Mozambique Hires SocGen to Help Refinance Stake in Eni Gas Plant

(Bloomberg) -- Mozambique’s Empresa Nacional de Hidrocarbonetos selected Societe Generale SA as financial adviser for the state oil company’s plans to refinance a stake in an offshore natural-gas project led by Eni SpA.

The process is ongoing and ENH and SocGen are working on financial models, Finance Minister Max Tonela said Thursday in an interview in Washington D.C. The company is taking advantage of record gas prices since Russia’s invasion of Ukraine as the project prepares to start exporting the fuel later this year.

“Now it’s more attractive for them and less risky to be involved,” Tonela said. “Now ENH has more ability to raise finance to play their role as a concessionaire.”

Rome-based Eni’s $7 billion Coral floating liquefied natural gas project off Mozambique’s northern coast is set to start producing by October, marking the start of the southeast African nation’s ambitions to become a major global source of the fuel. 

That comes even as an Islamic State-linked insurgency has delayed bigger on-shore projects by TotalEnergies SE and ExxonMobil Corp. and as Italy seeks alternatives sources of gas to reduce its dependence on Russian supplies. 

Mozambique has sought funding for its stakes in gas projects following massive discoveries of offshore its northern coast a decade ago. SocGen has been active in the projects, appointed as a financial adviser to ENH and in the same role to Total and Gigajoule Group on a planned LNG import terminal and power plant near Mozambique’s capital, Maputo.

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