Mozambique’s gas loss could be green energy’s gain 6 Apr 2021 Islamic State attacks near future LNG sites have shattered the African state’s dreams of gas production. Plants planned by Total and Exxon Mobil constitute 8% of current world demand. If they are never built, a mid-decade price spike may hasten a global pivot to renewable power.
Sticks will help Africa debt more than carrots 5 Jun 2019 One idea to curb binge borrowing is to offer UK legal protection to creditors only if financing terms are publicly disclosed. London may lose business but those who go elsewhere will look shifty and end up paying higher rates. The proposal is better than more debt forgiveness.
Credit Suisse Mozambique mess is shameful at best 4 Jan 2019 Three of the Swiss lender’s former bankers have been arrested on charges of facilitating kickbacks on $2 bln of loans for the African country. Credit Suisse blames deceptive employees and says it has tightened controls. Even if the fallout ends there, it’s highly embarrassing.
Mozambique removes only part of tuna bond whiff 16 Nov 2018 The war-scarred African nation wants to restructure its defaulted obligation by linking repayments to future gas sales, giving bondholders extra security. But developing $50 bln of projects in such an exotic locale is unlikely to avoid snags. Delays could mess up creditors’ sums.
Zambia debt dispute undermines African credit 17 Apr 2018 The copper producer has denied it has dollar debt beyond its $8.7 bln of foreign borrowing. Its vague clarification comes two years after a $3 bln bond scandal in neighbouring Mozambique. Bilateral lending, particularly from China, is blurring the credit picture across Africa.
Mistimed writedowns lesser of mining M&A evils 18 Oct 2017 Rio Tinto has been accused by the SEC of hiding the plunging value of a coal mine it bought in 2011. The charges are serious, but at least accounting procedures are fairly clear. If only there were rules that could prevent mining bosses getting carried away during M&A upswings.
Eni’s $4.2 bln gas deal has something for everyone 15 Mar 2013 Offloading 20 percent of a big Mozambique gas field to China’s CNPC cuts the Italian major’s development risk. China gets access to huge new energy supplies, at a price that vindicates Shell’s decision to pass up a more expensive deal last year. Mozambique wins, too.
Shell can afford to let Cove Energy go 29 Feb 2012 Gas-hungry Asian rivals are complicating the oil major’s attempt to buy 8.5 percent of a giant African gas field. Shell can probably justify paying more, but has no need to get into a bidding war. Even if Cove gets away, there should be other opportunities to participate in the field.
Shell pays up for a foothold in Mozambique gas 22 Feb 2012 The oil giant has offered $1.6 bln for gas explorer Cove Energy – a 70 pct premium but loose change for Shell. The assets are attractive and Shell has the know-how to exploit them. If Asian gas prices stay high and exploration projects deliver, the toppy price could be worth it.