Bloomberg, quoting the Nikkei newspaper, says Mitsubishi‘s gas project in Iraq will receive long-term trade credit insurance from Japan’s state-backed Nippon Export and Investment Insurance.
According to the report, this is the first time in 21 years that Japan has provided this facility for a venture in the Middle East.
The company will insure Mitsubishi’s initial investment of about 3.5 billion yen ($42 million) in the natural gas extraction and processing project in Basra, Nikkei said.
Mitsubishi and its partners Shell and Iraq’s South Gas Company will form the venture as early as next month, the newspaper said. The project may cost as much as 1 trillion yen.