Mozambique: Italy’s Meloni rejects ‘paternalistic’ cooperation with Africa

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Mozambique: Italy’s Meloni rejects ‘paternalistic’ cooperation with Africa

2:07 CAT | 13 Oct 2023

Photo: Presidente Filipe nyusi/Facebook

The head of Italy’s government, Giorgia Meloni, said in Maputo on Friday that Europe should abandon “paternalistic” cooperation with Africa and help countries to take advantage of resources locally, particularly the local processing of raw materials.

“The Italian government today considers energy to be an increasingly decisive sector, especially in strategic partnerships between Europe and Africa. In my opinion, we must move away from those forms of cooperation of the past, which advocated a very paternalistic approach. That’s not what it takes to build solid and lasting relationships,” said Meloni after meeting with the president of Mozambique, Filipe Nyusi.

“What is needed is to find long-term investments that can bring benefits to all the players, that bring together different nations, and energy is one of those factors,” he pointed out, recalling that Africa is a “major producer of any kind of energy” and that Italy, like the rest of Europe, “from one moment to the next” found itself “in a difficult energy supply situation”, with the conflict in Ukraine.

That’s why he argued that it’s “possible to build new relations between the two continents” and that the bet should be to process their raw materials in the respective African countries: “And thereby prosper thanks to the resources they have”.

She also pointed out that agricultural production in Africa should be a priority for European countries.

After meeting with the Mozambican head of state, the president of Italy’s Council of Ministers also recognised that “more needs to be done” in relations between the two countries, focusing on other areas besides natural gas.

“Mozambique is a country with great potential and prospects, which has a very important geostrategic role,” said Giorgia Meloni, hoping that the natural gas resources – the Italian oil company Eni is exploring one of these areas in the north of the country – will be a “huge opportunity for Mozambique” and for “strengthening” relations between the two countries.

The head of Italy’s government is accompanied on this visit to Maputo for a few hours by the head of the Italian oil company Eni, Claudio Descalzi,. Eni is celebrating its 70th anniversary and is looking to Africa for alternative sources of natural gas supply.

READ: Italy can become Europe’s energy hub, says Meloni at Eni’s 70th anniversary – Watch

Eni and partners to decide on Mozambique LNG investment by mid 2024, sources say

Eni, the concessionaire for Rovuma Area 4, is already discussing with the Mozambican government the development of a second floating platform, a copy of the first and called Coral Norte, to increase gas extraction, a source from the Italian oil company told Lusa earlier this month.

“Eni has finalised the Development Plan, which is currently under discussion with the partners and the Government of Mozambique for final approval. At the same time, Eni is moving forward with acquisition processes, environmental impact studies, etc., including contracts associated with drilling,” said an official source from the Italian oil company, questioned by Lusa.

This plan involves the acquisition of a second FNLG floating platform for the North Coral area, identical to the one that has been operating to extract gas in the South Coral area since mid-2022.

“Eni is working towards the development of Coral Norte through a second FLNG in Mozambique, taking advantage of the experience and lessons learnt in the Coral Sul FLNG, including those related to costs and execution time,” added the same source from the oil company, the delegated operator of that consortium.

Area 4 is operated by Mozambique Rovuma Venture (MRV), a joint venture co-owned by ExxonMobil, Eni and CNPC (China), which holds a 70% stake in the concession contract.

Galp, Kogas (South Korea) and Empresa Nacional de Hidrocarbonetos (Mozambique) each have a 10% stake.

A document released earlier, drawn up by the Mozambican firm Consultec for the oil company Eni, points to an investment of $7 billion (€6.3 billion), subject to approval by the Mozambican government.

READ: Shift from oil to gas is key pillar of ENI transformation, CEO says

If the schedule goes according to plan, the platform will begin production in the second half of 2027, meaning it could start up even before the onshore projects, which depend on security implications due to the armed insurgency in Cabo Delgado.

Coral Norte will be stationed 10 kilometres north of Coral Sul, which started production in November last year, making it the first project to take advantage of the large reserves in the Rovuma basin.

READ: Italy’s Meloni to delay Africa Summit due to Israel-Hamas war

Source: Lusa