K-SURE to extend guaranty in Australian Gas field project

The Korea Trade Insurance Corp. (K-SURE) recently decided to extend its guaranty regarding the Barossa gas field development project of Santos and SK E&S. The guaranty until Jan. 26 started in December 2021. At that time, five financial institutions approved a financing of about 440 billion won based on it.

Drilling in the development project off the northwestern coast of Australia came to a halt in June last year, when Aboriginal Australians filed a suit concerning mutual discussions in the environmental planning stage.

In addition, gas pipe construction in the project has been stopped by the National Offshore Petroleum Safety and Environmental Management Authority of Australia. On Jan. 13, the authority told the companies to submit a report after examining how the construction would affect Aboriginal Australians’ cultural remains.

According to the authority, the environmental planning must be changed and measures must be described if there is any negative effect.

Source: BusinessKorea