‘Positive disruptors’ in a hard economy – BancABC Mozambique managing director
US firm to invest US$100m in Delonex Energy Mozambique oil exploration in Palmeira, Manhiça
8:52 CAT | 24 Sep 2016
Boomberg / A file photo of Delonex Energy chief executive officer Rahul Dhir
United States-based private equity firm Warburg Pincus says it plans to invest at least US$100 million in hydrocarbon exploration in southern Mozambique.
The company said in a statement on Wednesday that its managing director Kenneth Juster met Mozambican President Filipe Nyusi in New York on Tuesday to discuss the project.
After his meeting with Nyusi, Juster told reporters that his company is working with the Mozambican government to draw up an agreement.
“If we reach this model understanding by next month (October), we can start operations in 2017”, he said.
Juster said it was important to begin the onshore exploratory work in the dry season, otherwise a year might be lost. The Mozambican rainy season runs from October through to March, with January and February being the wettest months.
“Many companies have discovered natural gas in Mozambique but we want to explore for oil in southern Mozambique and this makes the project very interesting,” said Juster.
He said he informed President Nyusi that his company was ready to begin prospecting for oil “and we have the resources and we are ready to invest in Mozambique.”
“We are satisfied, and as soon as the contract is signed we will go into action immediately. We are going to show that we are an investor that the government can trust,” Juster added.
According to ‘Notícias’, the gas and oil exploration activity is located in the area of the administrative post of Palmeiras, in Manhiça district, Maputo province.
The start of the operation, adds Notícias, is dependent on the completion of a contract currently being negotiated between the government and the US oil Dionnex Energy.
Warburger Pincus expects understanding to be reached until next month for the firm to make its first investments next year.
Mozambique is prominent among East Africa’s new hydrocarbon frontier markets, with giant gas finds off its coast fuelling an exploration boom.
“Many companies have discovered natural gas in Mozambique but we want to explore for oil in southern Mozambique and this makes the project very interesting,” said Juster.
Source: APA / Notícias
Show comments
Also read
Leave a Reply
Be the First to Comment!
You must be logged in to post a comment.
You must be logged in to post a comment.