23.07.2020
Practice Areas: Finance, Tax, Corporate and M&A
Industries: Oil & Gas
Desks: Mozambique Desk
Type: Abreu News
Abreu Advogados and JLA Advogados advised US$20 Billion Mozambique LNG Multi-sourced Project
Abreu Advogados (Portugal) and JLA Advogados (Mozambique), law firms, assisted the Senior Creditors – Export Credit Agencies and Africa Development Bank/AfDB – on the financing and development of the Area 1 LNG project in Mozambique.
The project, currently led by Total, and previously led by Anadarko, is located in the Golfinho-Atum field, within Area 1 of the Rovuma Basin offshore of the Republic of Mozambique.
Abreu Advogados Partners Ana Sofia Batista and Zara Jamal led the team, together with Partners Miguel Teixeira de Abreu and Paulo de Tarso Domingues, Of counsel Luís Fábrica, and the lawyers from both law firms: Mafalda Teixeira de Abreu, Isabel Pinheiro Torres, Assunção Vassalo, Sara Soares, André Pereira da Fonseca, Hugo Teixeira, Carol António Matias, Deivid Sacur, Absalão Mapanze and Rui Cardinal Carvalho.
The Rovuma Basin located offshore Mozambique is one of the largest worldwide gas discoveries in the last 15 years, totaling over 150 Tcf plus of gas resources. The region known as Area 1 has established a world-class resource with up to 75 Tcf of recoverable gas resources, which will be monetized through the development of a LNG project.
The Area 1 Mozambique LNG project is a world-scale and integrated LNG development that will initially comprise two (2) LNG liquefaction trains but with a site that is capable of housing up to ten (10) LNG trains. The project will also consist of an offshore pipeline, as well as upstream development and associated infrastructure. The project will require investment of approximately USD26 bn (nominal) to initiate production, and represents the largest FDI in Africa which will place Mozambique amongst the biggest players in this sector in the coming decades.
The firms acted together in this transaction with White & Case LLP, which acted as international counsel for the Senior Creditors.
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