The Iraqi Cabinet has approved sovereign guarantees totaling $3.25 billion, in relation to the development of the Nahr Bin Umar [Nahr Ben Umar] gas field in Basra.
It also exempted the special purpose company Halfaya Gas Company Ltd. (HGC), which was established to develop the field, from the requirement to submit two years of accounts, on condition that the parent company submits its accounts.
The amount specified represents a guarantee for loan repayment and accrued interest according to the economic model of the Ben Omar Gas Field project.
Issuance of a sovereign guarantee (debt guarantee) with interest to the lending banks totaling $3,246,000,000, for a duration not exceeding 11 years for the Ben Omar Gas Field project.
This follows the Oil Ministry/South Gas Company's modification of the contract through the drafting of a contract appendix to define the scope of government guarantee.
The parent company, Raban as Safina, is required to submit financial statements for the previous two years, audited by one of the reputable auditing firms to the Ministry of Finance, after the Halfaya Gas Company submits evidence that it is a subsidiary of this company.
