Exxon seeks financier for the LNG project
Mon Apr 20, 2009 12:00pm
Exxon Mobil Limited and its partners are reportedly seeking
US$9-billion more than K26-billion in debt financing for the PNG
liquefied natural gas project.
They are looking at raising the funds from a combination of loans
from export credit agencies, bonds and commercial bank loans to
supplement more than K8-billion loan from Exxon itself.
In addition to this, the project operators would also need to raise
another
K15-billion plus in equity, based on their target debt-to-equity
ratio of 70:30.
Reports reveal the operators are tapping all avenues of debt to raise
the amount required, given the still-tight liquidity in credit markets.
They are seeking a minimum tenure of 12 years, excluding the
four-year construction period.
Exxon Mobil partners in the project are Oil Search Limited, Santos,
Nippon Oil Corporation and the PNG government and landowners.
Korean Bank to assist Exxon
The Export-Import Bank of Korea said, it is looking to support Exxon
Mobil Limited and its partners.
It said, this would be under the condition that the world's largest
commercial buyer, Korea Gas Corporation is selected to receive steady
supply of gas from the PNG liquefied natural gas project.
The Export-Import Bank of Korea said this is because it would be
inappropriate to support a project that a Korean company is not
involved in.
The talks are at a preliminary stage. |
