Mozambique has hosted the country’s first
floating liquefied natural gas (FLNG) project, also the first
to have been financed globally. But unstable oil prices and the
country’s ongoing risk of sovereign default
With many energy projects planned for a final investment
decision (FID) between 2014 and 2016 having been deferred due
to oil price concerns, all five sponsors for the Coral South
FLNG project took their FID on June 1. On the same day, all the
drilling, construction and installation contracts for the
production facilities were signed in Maputo,
Mozambique’s capital city.
"The oil price was below $30
and that produced a number of obvious concerns not only
for the sponsors but also for the financiers"
But counsel involved in the deal point to the oil price
slump as a key concern among sponsors and financiers regarding
their ability to cover their...