Mozambique gas project of OIL fulfils conditions for $14.9-bn debt drawdown

New Delhi: Indian state-owned energy firms ONGC Videsh Ltd and Oil India Ltd, together with their foreign partners, have met conditions precedent for the first debt drawdown from the $14.9 billion facility they had tied up to part-finance their $24.1-billion LNG project in Mozambique.

"The first drawdown from project financing is expected in April 2021," OIL said in a stock exchange filing.

Led by French energy giant Total, the project envisages producing 12.88 million tonnes per annum of LNG from gas discovered in Area-1, offshore Mozambique.

"Oil India Ltd (OIL), the national oil company of India, announces that Mozambique Rovuma Offshore Area-l Project has satisfied all the conditions precedent for the first debt drawdown of the project financing," it said.

The project financing was finalised in July last year.

"The senior debt financing of $14.9 billion comprises export credit agencies direct loans, ECA covered facilities, commercial bank facilities and a loan facility with the African Development Bank," it said.

Indian firms hold a total of 30 per cent stake in Area-1, which has around 75 trillion cubic feet of recoverable gas resource.

The consortium operating Area-1 had approved the final investment decision (FID) on June 18, 2019.