On Wednesday, the new decree law over the Rovuma Basin Liquefied Natural Gas (LNG) developments in Mozambique was passed by the council of ministers, Interfax global energy.

General Manager Fabrizio Trilli of Eni East Africa, subsidiary of Eni multinational oil and Gas Company, said that the law would be published during the course of this week revealing the finalised content.

The final details still remained unknown to both Eni, operator of offshore Area 4 and Anadarko, operator of offshore Area 1, which stipulate the tailored ‘legal, contractual and stability’ plan for LNG projects onshore and offshore, Interfax said.

John Peffer, president of Anadarko Mozambique addressed the CWC Mozambique Gas Summit in Maputo this week:

‘We have not seen the document, but we think it’s a huge step for the project and shows a huge commitment from government’.

With an investment of US$4 billion in Mozambique, Anadarko, US oil and Gas company has recently completed the first phase of their LNG plant in Palma and is entering the Engineering, Procurement and Construction (EPC) contract selection phase.

Eni has decided to give EPC contracts for its 2.5 mtpa Floating LNG project and its 10 mtpa onshore project in the first quarter of 2015, Interfax said.

Trilli said that Eni will expect LNG from its offshore project in the first quarter of 2019 and its first shipments from the 10 mtpa onshore project in 2020.

Company Shareholdings

Onshore: Area 1 block partners and shareholdings

Company Shareholding
Eni 50 %
China National Petroleum Corp 20%
ENH 10%
Kogas 10%
Galp Energia 10%

Offshore: Area 4 block partners and shareholdings

Company Shareholding
Anadarko 26.5%
Mitsui 20%
Thailand’s PTTEP 8.5%
Oil India Ltd 4%
ONGC Videsh 16%
ENH 15 %
Bharat PetroResources 10%

Licensing

 In October, Mozambique released its fifth licensing round offering 15 onshore and offshore blocks, Interfax said.

Eni and Anadarko discovered around 5.1 trillion cubic metres of gas in three of the offshore blocks in the Rovuma Basin. The Zambezi Delta has been allocated six offshore blocks with a further two blocks offshore Angoche. Four onshore blocks are in the Palmeira region and near the Pande-Tamane producing area, Interfax said.

According to Arsenio Mabote, chief executive of Mozambique’s petroleum regulator INP, rounds were due to close on 20 January 2015, but they received requests from companies to postpone the deadline, Interfax reported.

Mabote said that government had not decided if they were going to agree to the requests ‘but that they are working on it’.

(Pic Credits: mcminnlaw)

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