The Government on Tuesday approved the Financing Structure and the Terms and Conditions of the Direct Financing Agreement for the Coral Norte FLNG Project, located in Area 4 offshore of the Rovuma Basin, in Cabo Delgado.
The aim is to enable the financing structure for the equity component of the National Hydrocarbon Company (ENH) in the Coral Norte FLNG Project, as well as the incorporation of ENH Coral Norte and the acquisition of all its share capital by ENH Rovuma Área 4, a limited company.
“This approval will enable ENH, as the State’s representative in the project, to participate through its subsidiary ENH Rovuma Área 4, a limited company, thereby isolating the risk associated with the direct participation of its parent company in projects with a complex financing structure. The segregation of these investments or projects into separate legal entities is more efficient and viable to limit each business’s exposure to the assets of the others, in line with international best practices,” said Salim Vala, spokesperson for the 27th session of the Council of Ministers.
Source: Club Of Mozambique / Domingo
