PF Archive

Oil and Gas

01 12 2002

GasAndes closes bridge The GasAndes project has closed a bridge financing and is looking to banks to put a longer-term deal in place in the coming months. The project is a gas pipeline between Chile and Argentina whose sponsors are TotalFinaElf, Metrogas of Argentina and AES Gener. Gener, a part of Electricidad de Caracas that was acquired by AES last year, is up for sale, but this status does not affect its role in the project.Nevertheless the deal needs to overcome heightened risk perceptions of Argentina, as well as well-publicised difficulties at some of Chile's generators, including Edelnor, formerly owned by Mirant. Tentative arrangers should be looking at a deal in the region of $177 million, the same size as the bridge put in place by Credit Lyonnais. Sucre inches closer Shell, Petroleos de Venezuela (PDVSA) and Mitsubishi have finalised a more formal agreement relating to the Mariscal Sucre LNG project. The three have agreed to fund more in-depth technical, economic, environmental and social feasibility studies for a proposed gas liquefaction plant to be located at the Paria peninsular in Venezuela. This is the last step before a joint venture agreement, which will follow confirmation of the project's viability.The three have chosen to go ahead with the project despite the gloomy outlook for the country's hydrocarbons sector as a result of political instability. Indeed, PDVSA CEO Ali Rodriguez signed the agreement at the same time as admitting that strikes and demonstrations had severely affected oil output in Venezuela. This in turn could have serious repercussions for the heavy oil projects that have formed the bulk of PDVSA's engagement with outside sponsors to date. Russian majors announce record...