London-headquartered law firm Herbert Smith Freehills has advised South Korea’s Kogas on its participation in the $11 billion Coral floating LNG project in Mozambique.
The world’s second-biggest corporate LNG importer, Kogas, owns a 10 percent stake in the Eni-led project that has recently reached the final investment decision.
Other stakeholders in the project are China National Petroleum Corporation, Portugal’s Galp Energia and Mozambique’s Empresa Nacional de Hidrocarbonetos (ENH).
The project finance, subscribed by 15 international banks and guaranteed by five export credit agencies, covers around 60 percent of the cost of the floating LNG facilities, Herbert Smith Freehills said.
Coral South is the first project in the development of the considerable gas resources discovered by Eni in Area 4 of the Rovuma Basin.
The floating liquefied natural gas (FLNG) unit will have a capacity of around 3.4 million tons per year.
The Coral field, discovered in May 2012, is located within Area 4 and contains approximately 450 billion cubic meters (16 TCF) of gas in place.
In October 2016, Eni and its Area 4 partners signed an agreement with BP for the sale of the entire volumes of LNG produced by the Coral South project for a period of over twenty years.
LNG World News Staff