Ashurst has advised export credit agencies Japan Bank for International Cooperation (‘JBIC’), Korea Ex-Im Bank (‘KEXIM’), Nippon Export and Investment Insurance (‘NEXI’) and the commercial banks on the US$2.8 billion financing for the Donggi-Senoro LNG project in Indonesia, which signed on 14 November.
The lenders included JBIC, KEXIM, Mizuho Corporate Bank, Bank of Tokyo Mitsubishi, Sumitomo Mitsui Banking Corporation, Korea Exchange Bank and NongHyup Bank.
Scheduled to commence production in mid-2015, the project will have production capacity of 2 million tonnes of LNG per year, with offtake to Korea Gas Corporation, Chuba Electric Power and Kyushu Electric Power. The project is 59.9% owned by Sulawesi LNG Development, a joint venture between Mitsubishi Corporation and Kogas, 29% by Pertamina and 11.1% by Medco Energi Internasional.
The Ashurst team is being led by Hong Kong -based partner Matthias Schemuth and Tokyo-based partner John McClenahan. The team also comprises Singapore-based partners Sean Prior and Daniel Reinbott, Tokyo-based partner Myles Mantle and Jakarta-based foreign legal consultant, Toby Grainger.
Commenting, Matthias Schemuth said:
“As Indonesia’s fourth LNG deal and the first to adopt the separate upstream and downstream development model applied following a change of law, this is an exciting project on which to work. Indonesia is currently the world’s fourth largest LNG exporter and this is one of several major gas infrastructure projects that we meet increased energy demands in the region. Being mandated on a project of this kind reflects Ashurst’s strength in both oil and gas sector and the Indonesian market.”
Source: www.ashurst.com
