Mozambique on hold

Nicholas Newman February 2017 Week 07
Map of Mozambique

The East African state of  Mozambique has sizeable gas volumes, but it lacks the commercial means to bring them to market, writes Nicholas Newman

Mozambique’s natural gas resources, at 180 tcf (5.1 tcm), could make the country a leading light as a gas exporter in Africa, and the world. Much of this endowment lies offshore, in the Rovuma Basin in the north. An onshore liquefaction plant is planned, in addition to an early stage floating LNG (FLNG) unit, which would transform the country into a major exporter. Rovuma Basin Eni and Anadarko Petroleum are in the final stages of completing fundraising for the development of the 85 tcf (2.4 tcm) Mamba field in Area 4 and the 75 tcf (2.12 tcm) Prosperidade field in Area 1. Their plans include a US$17 billion two-train LNG export facility, with capacity of 12 million tonnes per year.

Commenting on progress, Standard Bank’s director of oil and gas in Southern Africa, Paul Eardley Taylor, said the Italian company had “largely concluded its debt raising and is working through documentation”. He anticipated Eni’s financial investment decision (FID) would be made in March, with financial closure as soon as June. In contrast, Anadarko is some way behind, with financial closure expected in a year’s time. Eni To help pay for the Mamba development, Eni sold down shares in its licence. In 2013, Eni sold a 20% stake to China National Petroleum Corp. (CNPC) for US$4.2 billion

To read more see AFROIL Week 07 page 4

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