ENI Group raises funds to explore natural gas in Mozambique

28 September 2016

Italian group ENI has begun to contact banks to secure the billions of dollars it needs to explore natural gas deposits in the Rovuma basin in Mozambique, Reuters reported.

The agency also reported the group confirmed a meeting with bankers in London last week to put together the financing for the operation of the Coral field, which contains part of the large natural gas deposits that were discovered about six years ago in the Area 4 block of the basin.

The banks contacted are expected to respond in the coming weeks with the conditions for the loans requested by the Italian group, an initiative that is one of the final steps before the board can make a final investment decision.

“The most complicated problem is the risk associated with the country, Mozambique,” said one of the sources contacted by the news agency.

A mission from the International Monetary Fund (IMF) last Thursday started meetings with members of the government of Mozambique in order to, among other things, clarify debts taken on in 2013 and 2014 and only disclosed this year.

The disclosure of debt incurred by public companies with a State guarantee has led to the suspension of financial aid from the International Monetary Fund to Mozambique. This decision was replicated by other members of the Group of 14, countries and multilateral organizations that provide assistance to the country.

The ENI group’s partners in this block are the China National Petroleum Corporation, with an indirect shareholding of 20%, the Portuguese group Galp Energia, South Korea’s Kogas and Mozambican state oil and gas company Empresa Nacional de Hidrocarbonetos (ENH). (macauhub)