Mining & Energy
Xtract Resources shares rocket after collaboration deal in Mozambique
Photo: Presidencia da Republica de Moçambique
President of the Republic, Filipe Nyusi, said in Maputo yesterday that the announcement of the final investment decision of the Rovuma basin Area 1 natural gas exploration project represented an important milestone in the profound transformations of the Mozambique economy.
However, President Nyusi cautioned that is was necessary to manage the high expectations created by the exploitation of these resources.
“We must have serenity and show good sense, and we must acknowledge that the results are not for today or tomorrow, but will come only with time. There is therefore a set of expectations to manage step by step. We must take into consideration that it will take time before the return on the investment,” the president said at the final investment decision announcement ceremony.
The investment is calculated at an estimated US$20 billion, with potential revenues of US$2 billion per year for a period of 25 years. It is already the largest investment ever in Africa, and will place Mozambique among the three largest producers of liquefied natural gas in the world.
For President Nyusi, the timing of this project represents a unique opportunity to promote economic expansion, jobs and income, while reducing poverty, curbing social inequalities and boosting economic development.
The potential contribution of the gas sector to the rapid growth of gross domestic product must be a catalyst for the process of economic diversification, the head of state said.
“We need to harness the gains from our natural resources to invest in important sectors such as agriculture, agro-processing, tourism, infrastructure, as well as in social sectors such as education and health,” Nyusi said.
According to the president, this will allow rural families to move from subsistence to commercial agriculture and access infrastructure to better channel their produce to market.
Nyusi therefore reiterated that, in this regard, it was incumbent upon the Mozambican government and its business partners to better exploit resources on land and at sea, transforming them into wealth for all Mozambicans.
Anadarko company president Al Walker also spoke at the announcement ceremony, saying the event was the culmination of a journey begun in 2005 when his company won the hydrocarbon research tender in area 1 of the Rovuma basin.
The ceremony was also attended by U.S. Deputy State Secretary for Trade, Karen Kelly, who said the implementation of the Anadarko project would contribute to the development of Mozambique and the African continent in general.
Kelly expressed her appreciation for the commitment of all the partners in the project, which she hoped would help generate more partnerships between American and African companies.
Yesterday’s ceremony was also attended by the President of Zimbabwe, Emnerson Mnanangagua, King Mswati III of eSwatini, Lesotho Prime Minister Thomas Thabane, representatives of Area 1 partners, other African states and national companies.
Ernesto Max Tonela, representing the Government of Mozambique, and Al Walker, CEO of Anadarko and representative of the consortium including also Japan’s Mitsui, Thai PTT Exploration & Production, Indian NGOs, Barhat Petro Resources and Oil India and ENH, signed the largest private investment project ever in Africa and Mozambique, which will make Mozambique the largest producer and exporter of liquefied natural gas on the continent.
Meanwhile, MDM deputy Lutero Simango was the only representative of the political opposition in Mozambique, @Verdade reports.
Mozambican music was also reportedly lacking at the FID announcement. Except for some ‘batucadas’ [drumming], South African music dominated the event, which opened to the sound of “The Lion Sleeps Tonight” and “Pata Pata,” adds the same source.Source: Noticias / A Verdade