Qatar Petroleum and the US’ ExxonMobil have begun approaching export credit agencies (ECAs) to seek funding for the Barzan gas project in Qatar’s North Field.

The approach marks the beginning of financing for the scheme, which is also expected to include commercial bank tranches and a project bond, which could be launched in 2011. The breakdown of the how much will raised from each source is still unclear.

According to sources close to the project, an information memorandum on the project will be sent to ECAs in mid-November by the UK’s Royal Bank of Scotland (RBS), which has been appointed financial adviser by the joint venture partners (20:11:09).

Barzan will produce gas for domestic consumption and includes both an onshore and offshore portion. Technical bids for the onshore work were due on 5 November from four prequalified consortiums (MEED 22:10:10). Bids for the offshore portion were made in September.

Now that bids have been submitted ECAs which can support those bidders are being contacted to start lining up financing for the project. Bidders on the project include companies from France, Italy, Japan, and South Korea.

QP and ExxonMobil have already used the bond markets to finance the RasGas project, most recently in July 2009 when the company raised $2.23bn after receiving offers from investors of more than $10bn (MEED 15:06:09).

One source close to the Barzan project says, “QP and ExxonMobil have already built up a strong following in the capital markets from RasGas, so it makes sense for them to go to the markets again with Barzan.”

Financial close for the Barzan project financing is expected to occur in mid-2011.

QP and Exxon have already received bids for engineering, procurement and construction (EPC) contracts on the project. The bidders for the onshore portion of the development are:

• Technip (France)
• Saipem (Italy) and CTCI Corporation (Taiwan)
• Chiyoda Corporation (Japan) and Samsung Engineering (South Korea)
• JGC (Japan)

For the offshore works the bidders are:

• Saipem
• J Ray McDermott (Jebel Ali-based)
• Hyundai Heavy Industries (South Korea)
• National Petroleum Construction Company (UAE)