Tokyo, Oct 7, 2009 - (JCN Newswire) - Sakhalin Energy Investment Company Ltd. (SE), where Mitsubishi Corporation hold 10% share (the shareholder structure comprised of OAO Gazprom, Royal Dutch Shell plc, Mitsui & Co., Ltd., and Mitsubishi Corporation), has concluded an additional financing agreement of US$1.4 billion for the Sakhalin-2 Phase 2 project with the consortium of international commercial banks. Nippon Export and Investment Insurance (NEXI), an Export Credit Agency owned by the Japanese government, will provide Overseas United Loan Insurance (Investment and Loan Insurance for Natural Resources and Energy) which covers the loan granted by the consortium banks. Based on the additional financing agreement and associated documents, the consortium banks will provide additional loan of US$1.4 billion.
In this context, Mitsubishi Corporation, along with other Shareholders of SE, signed a sponsor guarantee agreement which will be effective until the completion of the project.
SE has already signed other financing agreement of US$5.3 billion in June 2008, the additional project finance contract of US$1.4 billion this time makes a total debt of US$6.7 billion. The funds will be used to finance the completion of the full scope works of the Sakhalin-2 Phase 2 project, including the ongoing drilling program for gas and oil production.
As a shareholder of SE, Mitsubishi Corporation considers this conclusion of the additional project financing as one of the meaningful milestones of Sakhalin-2 Project, and will continuously support Sakhalin Energy to become a reliable energy supplier to all the customers and concerned stakeholders.
Sakhalin II is one of the world's largest integrated oil and gas development project, with estimated resource of approximately 4 billion barrels oil equivalent.
Sakhalin Energy Investment Company Ltd is the Joint Venture of Shareholders and is the Operator of the SakhalinⅡ project. Shareholder composition of the company is OAO Gazprom (50%+1share), Royal Dutch Shell plc (27.5%-1share), Mitsui & Co. Ltd (12.5%), and Mitsubishi Corporation (10%).
Project Financing is a finance scheme secured by the cash flow generated by the project, which is commonly used in the world's oil and gas industry. Sakhalin Energy Investment Company Ltd, the Japan Bank for International Cooperation (JBIC) and a consortium of international commercial banks signed a Project Finance Contract of US$5.3 billion for the Phase2 project on 16th June 2008.
About Mitsubishi Corporation
Mitsubishi Corporation (TSE: 8058; ADR: MSBHY) is Japan's largest general trading company (sogo shosha) with over 200 bases of operations in approximately 80 countries worldwide. Together with its over 500 group companies, Mitsubishi Corporation employs a multinational workforce approximately 55,000 people. The Group has long been engaged in business with customers around the world in virtually every industry, including energy, metals, machinery, chemicals, food and general merchandise. Mitsubishi Corporation's commitment to social responsibility is embodied in its corporate philosophy and demonstrated through its extensive programme of cultural, environmental and educational projects worldwide. For more information, please visit www.mitsubishicorp.com .
Contact:
Mitsubishi Corporation
Tel: +81-3-3210-2171
Fax: +81-3-5252-7705
Oct 7, 2009
Source: Mitsubishi Corporation
Mitsubishi Corporation (TSE: 8058) (FTSE: MBC)
From the Japan Corporate News Network
http://www.japancorp.net
Topic: Press release summary
View more news from these Sectors: Energy
|
Print
Alerts
