Dolphin attracts US $4 billion worth of funding
UAE-based Dolphin Energy has secured US $4 billion in binding financing commitments from 25 national, international and Islamic financing institutions for its gas project.
UAE-based Dolphin Energy has secured US $4 billion in binding financing commitments from 25 national, international and Islamic financing institutions for its gas project. The Dolphin gas project is a regional energy initiative scheduled to come on stream at the end of 2006.
It aims to pump up to 3.2 billion cubic feet a day (bcf/d) of refined natural gas to the UAE from Qatar’s offshore North Field. In a statement, the company said it will accept approximately $3.5 billion of the four year commitments offered, which will cover the construction costs of the project in line with its scheduled completion in late 2006. It said that conventional lending amounts to $2.45 billion of the total and Islamic financing accounts for around $1 billion.
The conventional facility of $2.45 billion is led by 15 mandated lead arrangers including National Bank of Abu Dhabi, Abu Dhabi Commercial Bank, Barclays Capital, First Gulf Bank, HSBC, Bank of Tokyo-Mitsubishi, Royal Bank of Scotland and Qatar National Bank. Mandated lead arrangers for the Islamic financing include BNP Paribas, Citibank and Gulf International Bank.
The company also said there is overall pricing equivalence between the Islamic and conventional facilities. The per annum margin above Libor on each facility is 0.35% for the first two years, and 0.45% for years three and four.
“The attractive pricing on our facilities demonstrates just how much confidence the market places in our capabilities, our vision, and the strength of our shareholders,” said Ahmed Ali Al Sayegh, CEO, Dolphin Energy.
Dolphin has also begun the supply of 40 million cubic feet of gas a day to Ras Al Khaimah and has signed 25 year gas supply deals with Abu Dhabi Water & Electricity Authority (ADWEA), Union Water & Electricity Co (UWEC) and the Dubai Supply Authority. Dolphin Energy is owned by Mubadala Development Company (51%), Total and Occidental Petroleum (24.5% each).