Oil and gas company Oil Search Ltd
(ASX:OSH) has announced that lenders to the Papua New Guinea liquefied natural gas project have signed the various financing documents that make up the PNG LNG Project financing.
Oil Search says a total of US$14 billion of commitments from lenders has been secured, which it says is more than sufficient to meet the estimated US$13 billion of debt required for the project, on an agreed 70% gearing basis.
The financing includes US$8.3 billion of commitments from key export credit agencies, US$1.95 billion of uncovered commitments from a syndicate of 17 commercial banks, and US$3.75 billion of co-lending from ExxonMobil.
The company says following formal commitments from lenders, all parties will now move expeditiously to clear the remaining conditions precedent to first drawdown, with financial close targeted by mid February 2010.
Oil Search earned $452.31 million for calendar 2008.
