Export Finance and Insurance Corporation (EFIC) has formalised documentation of a loan of up to US$500M as part of a syndicate providing financing to the ExxonMobil led LNG project in Papua New Guinea.
As announced last week by Minister for Trade, Simon Crean, EFIC will provide a loan of $US100M on its Commercial Account with further amount of up to $US400M on the Australian Government’s National Interest Account.
ASX-listed companies Oil Search (29.0%) and Santos (13.5%) are major investors in the project to develop, own and operate the first phase of an integrated LNG facility in the Southern Highlands of Papua New Guinea including a gas gathering and conditioning plant, overland and subsea pipeline and an LNG export terminal near Port Moresby,
‘We’re proud to be involved in this exciting project which will see benefits for the communities of Papua New Guinea and Australian business supplying services and support to the project,’ said Angus Armour, EFIC’s Managing Director & CEO.
“Not only does EFIC’s support assist Oil Search and Santos to realise their investment plans in PNG but, importantly, has already seen Australian exporters identified as preferred tenderers and suppliers for contracts worth more than $US1.2 billion for the construction phase of the project with significant further opportunities available. ”
As Australia’s export credit agency, EFIC joins the lead consortium of export credit agencies providing financing for the PNG LNG Project.
“EFIC’s experience in financing large, complex projects and long history supporting resource projects in PNG allowed us to work alongside an international team to ensure Australia’s involvement in this world class project” said EFIC Executive Director, Origination and Portfolio Management, Peter Field.
“EFIC’s involvement in this transaction demonstrates the complementary role export credit agencies perform when working with commercial banks. The transaction requires substantial long term project finance, well beyond the capacity of the private market.”