RMB Confirms Total's $15B Funding for Mozambique LNG Project

May 28, 2020

Image: Total
Image: Total

South Africa's Rand Merchant Bank (RMB) confirmed on Thursday that it is part of a consortium of banks providing $15 billion funding for French energy major Total's Mozambique liquefied natural gas (LNG) project.

Sources told Reuters last week that Total had secured $14.4 billion in funding for the project with a group of about 20 lenders.

RMB, owned by FirstRand Bank, said the signing of $15 billion in financing was scheduled for June.

"It will be a remarkable achievement in the circumstances," Jonathan Ross, head of oil and gas coverage at RMB, said in a statement, adding that other projects have experienced delays.

"The backdrop could not have been worse for Total and partners to raise huge volumes of long tenor funding – the economic fallout of COVID-19 has put enormous pressure on banks' funding and capital and has triggered an oil price crash."

Exxon Mobil in early April delayed approval of its $30 billion Rovuma LNG project in Mozambique as the COVID-19 pandemic forced the industry to rein in spending.

Total concluded the acquisition of Anadarko's 26.5% interest in the Mozambique LNG project for $3.9 billion in September. It is expected to start production in 2024. 

(Reporting by Helen Reid, Editing by David Goodman )



Current News

Fred. Olsen Windcarrier Picks Jack-Up for 1600t Huisman Crane

Fred. Olsen Windcarrier Picks Jack-Up for 1600t Huisman Crane

Japan Identifies 10 Areas for Offshore Wind Projects

Japan Identifies 10 Areas for Offshore Wind Projects

Neptune Strikes Hydrocarbons at Dugong Well, off Norway

Neptune Strikes Hydrocarbons at Dugong Well, off Norway

LLOG Charters Transocean Rig for Shenandoah Drilling

LLOG Charters Transocean Rig for Shenandoah Drilling

Subscribe for OE Digital E‑News

Offshore Engineer Magazine