Angola/Mozambique: Countries ‘among most interesting’ Africa oil, gas prospects

Login

Register

http://www.clubofmozambique.com/

Angola/Mozambique: Countries ‘among most interesting’ Africa oil, gas prospects

8:29 CAT | 29 Jan 2019

File photo: Noticias

Angola and Mozambique are among the most interesting countries to monitor in terms of oil and gas in sub-Saharan Africa, according to the energy consultant Wood Mackenzie.

In a note to investors about markets to follow this year in Africa, the company’s analysts write that, although they expect fewer final investment decisions this year than last, those that are guaranteed a green light in 2019 will be more far-reaching, with associated reserves and capital investment set to triple. And Mozambique leads the way.

The note cites the project overseen by Anadarko, in area 1, which is set to be the first to get a final investment decision, followed by ExxonMobil/ENI, in area 4.

Together, the projects entail $40 billion of capital investment and are set to mulitply by 10 the output of gas in Mozambique, “to some 5 billion cubic feet a day”. The analysts note that the timing of the final investment decision by Anadarko will depend on sales guarantees to be negotiated with third parties.

However, Wood Mackenzie argues, the projects will not both be approved in the same year, nor get past the regulatory constraints in the same year.”

In the case of Angola, the note stresses the fact that France’s Total may again drill down more than three kilometres to find oil, stressing that if ENI also finds crude at that depth that “may lead to the development of a cluster.”

At issue is the ultra-deep exploration of Block 48 at the end of this year, by Total, and the exploration of at one of the four Blocks 15/05 by ENI, following the discovery of crude in the Kalimba-1 and Afoxe-1 blocks last year.

In turn, Block 18, which is believed to contain 140 million barrels, “the first greenfield project since 2014”, is set to balance the rapid decline of Angola’s other production, the note concludes.

Source: Lusa