Paste your Google Webmaster Tools verification code here
December 12, 2015 | 10:15 | London
The ratings of the Middle Eastern oil and gas projects — Ras Laffan Liquefied Natural Gas Company Limited II and Ras Laffan Liquefied Natural Gas Company Limited 3 (together RasGas) and Dolphin Energy Limited (DEL) — can withstand oil prices of $30/bbl or below, Fitch Ratings has said.
Both projects have high financial flexibility to weather the current market downturn, supported by their favourable competitive positions. Both projects benefit from strong sponsors and sound economics. We assume that if required, sponsors will provide liquidity advances to support the projects during temporary market downturns due to the strong long-term project economics, Fitch said in a statement.
As Fitch rates through the cycle, we do not currently anticipate negative rating actions. Our reference cycle sees higher prices inducing new supplies, which then push prices below historical norms and to a pricing trough, followed by another cycle of increasing prices and production volumes. The ratings consider these fluctuations through the cycle, the statement added.
2015 © Semantics Global Media FZ LLC. All Rights Reserved.