The investigation by audit firm Kroll into the ‘secret’ borrowing taken out to fund the EMATUM, ProIndicus and MAM maritime security companies has been completed – and is expected to give an insight into what happened to $2 billion borrowed on the promise of  riches from Mozambique’s giant LNG projects. However, as Mozambique’s financial crisis complicates the already challenging LNG debt financing, it may be that the ProIndicus, EMATUM and MAM deals have compromised compromised the very projects they were hoping to protect.

Mozambique’s default on the government-guaranteed debt will make raising financing for ENH’s stake in the project all the more difficult. The other concessionaires in Area 4 and Area 1 have offered to finance the state-oil company’s costs, estimated to be around $2.5 billion, but this will come at a high and potentially unsustainable price depending on how much and how quickly the LNG projects actually start generating revenue to ENH.

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