First debt drawdown for Mozambique Rovuma project expected in April: OIL

• OIL is a sponsor in Mozambique Rovuma Offshore Area 1 Block, through its 40 percent shareholding in BREML

• The project financing for the block was finalised in July 2020

New Delhi: State-run Oil India Limited (OIL) has said that Mozambique Rovuma Offshore Area-l Project has fulfilled all pre-conditions for the first debt drawdown and it is expected to be issued in April. In an official statement released on Wednesday, OIL said, "Oil India Limited (the "OIL"), the National Oil Company of India, announces that Mozambique Rovuma Offshore Area-l Project (the "Project") has satisfied all the conditions precedent for the first debt drawdown of the project financing, which was finalised by the Project in July 2020. The senior debt financing of USD 14.9 Billion comprises of Export Credit Agencies (the "ECA") Direct Loans, ECA Covered Facilities, Commercial Bank Facilities and a Loan Facility with the African Development Bank. The first drawdown from project financing is expected in April 2021." However, OIL did not disclose the value of the first debt drawdown.

Debt drawdown involves gradual releasing of funds rather than releasing the entire amount at once. By slowly drawing down the debt, lenders can verify that funds are not misspent before providing more money.

OIL is a sponsor in Mozambique Rovuma Offshore Area-l Project

OIL is a sponsor in Area 1 Block, through its 40 percent shareholding in BREML, which holds a 10 percent participating interest in the area. The remaining 60 percent shares in BREML are held by ONGC Videsh Limited. Area-l Project will be Mozambique's first onshore LNG development, initially consisting of two LNG trains with total nameplate capacity of 13.12 million tons per annum (MMTPA) for which a Final Investment Decision (FID) at consortium level was announced on June 18, 2019.

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The project is operated by Total E&P Mozambique Area 1 Limitada, a wholly owned subsidiary of Total SE, with 26.5 percent working interest. Co-venturers include ENH Rovuma Area Um, SA (15 percent), Mitsui E&P Mozambique Areal Limited (20 percent), ONGC Videsh Rovuma Limited (10 percent), Beas Rovuma Energy Mozambique Limited (10 percent), BPRL Ventures Mozambique BV (10 percent), and PTTEP Mozambique Area 1 Limited (8.5 percent).

OIL

Oil India Limited (OIL), a Navratna PSU, is a fully integrated E&P company in the upstream sector and is the second largest national oil and gas company of India as measured by total proved plus probable oil and natural gas reserves and production in India. 
Besides having a pan-India presence, OIL has participating interest in blocks in over eight countries overseas — Libya, Gabon, Nigeria, Venezuela, USA, Mozambique, Russia and Bangladesh.

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