Translate

Translate This Page

Monday, February 13, 2012

Muhibah – PTT lent supports to APH project (CIMB)

Thailand's national oil and gas company, PTT Public Co Ltd, is believed to have lent its support to a special purpose vehicle (SPV) anchored by CIMB and Muhibbah Engineering, to revive the APH project. PTT has given its commitment that it would continue to honour its 15-year offtake agreement with APH as long as the project gets on track and is completed in accordance with a new work schedule which is part of the restructuring scheme. PTT is not interested in owning the facility. PTT views the facility as one that would be key a infastructure asset to expand its oil trading business to the Far East, sources say.

An offtake agreement from a credible player such as PTT is one the key determinants of the financial viability of the project. A successful restructuring of APH would need the consent of 75% of the creditors, including CIMB and Muhibbah. Muhibbah is prepared to convert its debt into equity to revive the project. KIC O&G, which is controlled by Abdul Rashid Mohamed Isa, is said to be exiting the APH project. (Edge Weekly)

No comments: