Mozambique’s ENH takes on US$2.2 billion state-backed loan

14 April 2020

The sovereign guarantee of 136.1 billion meticais (about US$2.2 billion) entered in the State Budget for 2019 for Mozambican state oil and gas company ENH has already been used, said the minister of Economy and Finance of Mozambique.

Minister Adriano Maleiane responded to a question from Mozambican newspaper @Verdade, as he left a parliamentary hearing on Friday 10 April.

The sovereign guarantee is intended to allow the company to borrow from credit institutions to ensure the investment it needs to make to ensure its share of 15% in the Mozambique LNG natural gas exploration consortium in the Golfinho/Atum field in Area 1 of the Rovuma Basin.

With this further indebtedness, ENH’s liabilities to banks and partners that will explore natural gas deposits in those fields of the Area 1 block total US$3.7 billion.

The Area 1 block is operated by France’s Total group, with a 26.5% stake, and its partners are ENH Rovuma Área Um, a subsidiary of Mozambican state oil company ENH, with 15%, Mitsui E&P Mozambique Area1 Ltd. (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%) and PTTEP Mozambique Area 1 Limited (8.5%). (macauhub)