19 May 2008
Sana’a, Yemen / London, England / Paris, France

Yemen LNG is pleased to announce the signing in London of US$2.8 billion of loan facilities to finance the construction of its multi-billion dollar new LNG plant and associated infrastructure, representing the largest ever limited recourse financing of a project in Yemen. The Project, which is now more than 75% complete, is currently employing over 10,000 construction workers at its site near Balhaf on the Gulf of Aden coast. The financing involves a wide range of commercial banks and international financing institutions, including French, Korean and Japanese export credit institutions.

“The success of the financing reflects a combination of strong Project fundamentals and the high degree of support provided by both the Government of Yemen and the international sponsors, consisting of TOTAL (Project Leader) (39.62%), Hunt Oil Company (17.22%), Yemen Gas Company (16.73%), SK Energy Co., Ltd. (9.55%), Korea Gas Corporation (8.88%), the General Authority for Social Security and Pensions of Yemen (5.00%) and Hyundai Corporation (3.00%)”, said a spokesperson from Yemen LNG.

The loan facilities include US$1.7 billion in senior limited recourse project finance facilities. These consist of a term loan facility, a loan facility benefiting from a comprehensive COFACE guarantee, a loan facility benefiting from a comprehensive NEXI guarantee and a bank-funded loan facility benefiting from a comprehensive K-EXIM guarantee, each provided by The Bank of Tokyo-Mitsubishi UFJ, Ltd., BNP Paribas, Citigroup, ING Bank N.V., The Royal Bank of Scotland plc, Société Générale and Sumitomo Mitsui Banking Corporation as Yemen LNG Facilities Initial Mandated Lead Arrangers and Bookrunners. In addition, the project benefits from direct loans from K-Exim and JBIC.

The financing also includes a US$1.1 billion, multi-tranche TOTAL sponsor loan facility that benefits from a guarantee from TOTAL and is funded by The Bank of Tokyo-Mitsubishi UFJ, Ltd., BNP Paribas, Citigroup, CALYON, ING Bank N.V., The Royal Bank of Scotland plc, Société Générale and Sumitomo Mitsui Banking Corporation as TOTAL Facility Initial Mandated Lead Arrangers.

Yemen LNG is developing and will own and operate a two-train natural gas liquefaction plant (the “Plant”) with a guaranteed capacity of 6.7MMtpa, plus associated pipelines, storage and port facilities. The Project will monetise gas extracted from the fields dedicated for that purpose in the Marib region of central Yemen. Yemen LNG has committed approximately 100% of the guaranteed Plant capacity under three 20-year take-or-pay LNG sales and purchase agreements with Korea Gas Corporation, Total Gas & Power Ltd. and Suez LNG Trading S.A. Construction costs are estimated at approximately US$4 billion.

Yemen LNG and the sponsors have been advised by Citi and Sullivan & Cromwell LLP. The banks and the export credit agencies have been advised by Milbank, Tweed, Hadley & McCloy LLP.

For additional information, please contact the Public Relations team at: PR@YEMENLNG.COM or at 712002064 or 711311115