Primeline Energy Holdings Inc. reports the binding documentation for the project finance facility for the financing of its share of the costs to complete the LS36-1 gas field development offshore Zhejiang Province, China has now been finalized and was signed by Primeline and the financing banks Nov. 17.
As announced Nov. 7, Primeline, and its affiliate company Primeline Petroleum Corp. (PPC) secured a project finance facility from a syndicate jointly led by China Development Bank (CDB) and China Export and Import Bank (EXIM) with Shanghai Pudong Development Bank (SPDB) as participant and agent bank.
China National Offshore Oil Corp. (CNOOC) is the 51% owner and operator of the development. Under agreements signed by CNOOC, Primeline and PPC in 2010, CNOOC has advanced all development costs to date. The loan facility has been put in place in order to finance the obligation of Primeline and PPC to repay their share of the development costs (collectively 49%) to CNOOC.