Mozambique: Oil Institute expects area 4 LNG final investment decision by June

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Mozambique: Oil Institute expects area 4 LNG final investment decision by June

3:17 CAT | 06 Feb 2020

Image: Eni

The president of Mozambique’s National Petroleum Institute (INP) on Thursday said that he is waiting until June for the final investment decision of the consortium for area 4 gas exploration in the north of the country.

Carlos Zacarias said on Thursday that the decision should be taken as soon as possible, by the end of this semester.

The ‘final investment decision’ (FID) which marks the beginning of the countdown for production to begin – is at this time dependent on the formalisation of the commitment, already agreed between all partners.

The decision involves the exploitation of the Mamba deposit in the Rovuma Basin, an investment that may amount to $25 billion (€22.7 billion) with production expected to start in 2025.

The same consortium will also operate a smaller deposit called Coral Sul with a platform ship that will be permanently anchored on the high seas above the deposit.

Construction of the vessel is more than 60% complete and towing to the Mozambique Channel is scheduled for the end of 2021, to start extracting and producing liquefied natural gas in 2022.

Area 4 is operated by MRV, a joint venture owned by ExxonMobil, Eni and the National Petroleum Corporation of China (CNPC), which holds 70% interest in the concession contract for exploration and production in that area.

Galp, KOGAS and the Empresa Nacional de Hidrocarbonetos de Moçambique each have a 10% equity interest.

Another consortium led by Total is responsible for exploration in Area 1 and took over the FID in 2019, with production expected to start in 2024 and investment also around $25 billion.

Gas extraction from the Rovuma projects will operate off the coast of the northern province of Cabo Delgado through underwater pipelines, with liquefaction taking place onshore in a factory under construction in the new gas city, which is being built in Palma, on the Afungi peninsula, where the oil companies will share infrastructure.

Source: Lusa