Qatar Petroleum closes funding

Qatar Petroleum closes funding

Published: January 4, 2012

US$10bn gas development marks 2011’s largest project financing.

Qatar Petroleum (QP) has finalised funding for its US$10.4bn Barzan Gas Project in the largest project financing to close in 2011.

The bulk of the project, which will include on- and off-shore gas processing facilities, will be financed with a syndicated loan from banks and export credit agencies worth some US$7.2bn. The remaining money will be provided in equity. ExxonMobil, QP’s partner in the project, will also provide senior debt.

The funding package comprises a commercial bank facility of US$3.34bn, an Islamic tranche worth US$850mn and US$2.55bn of export credit agency financing.

The Royal Bank of Scotland is acting as the project’s financial adviser. White & Case acted as legal adviser to the sponsor, while Allen & Overy acted as counsel to the export credit agencies.