Mining & Energy
Mozambique's challenges and opportunities highlighted at Big 5 Board Awards
Photo Courtesy of Isaac Abdurrazaque Jamal, Facebook
The US oil company Anadarko announced on Friday that it is planning to spend 2.5 billion US dollars on local contracts during the construction of its liquefied natural gas (LNG) project in northern Mozambican province of Cabo Delgado.
Anadarko is the operator of Offshore Area One of the Rovuma Basin, off the coast of Cabo Delgado. It has so far found 75 trillion cubic feet of natural gas and plans to build a facility on the Afungi Peninsula capable of producing 12.88 million tonnes of LNG per year. The company expects to begin production in 2023 or 2024 with construction starting next year.
Speaking in the northern city of Pemba at a seminar on local opportunities, Anadarko’s Country Manager Steve Wilson revealed the company will offer 2.5 billion dollars’ worth of contracts to Mozambican companies if they have the necessary skills.
Mozambique’s Ministry of Mineral Resources and Energy and Anadarko jointly organised the one-day event. Among those attending were local and international business figures, journalists, and academics.
According to the daily newspaper “Noticias”, President Filipe Nyusi told the audience the oil and gas sector will be profitable if everyone benefits. He explained that Anadarko and its partners are to invest about thirty billion dollars in the project, and he estimated that this will lead to the Mozambican state receiving about 2.1 billion dollars per year from 2025.
President Nyusi reminded the participants they should not forget that the resources being found in the country belong to all Mozambicans. He stressed that there is no Makondes’ and Kimwanis’ gas, Nyungues’ coal, or Macuas’ heavy sands. The resources belong to all Mozambicans from the Rovuma to Maputo.
The President explained that the government’s purpose in promoting the meeting was to transform the country’s natural resources into wealth for Mozambicans. He called on national companies to do their best to take part in the enterprise.
Steve Wilson told the seminar about the progress in constructing the resettlement village which will house the 550 families who will be obliged to move from Quitupo to make way for the LNG facilities, adding that everything is running smoothly. He also noted that the construction of an airport in Afungi will begin later this year.
Turning to the procurement process, he stressed, “we want to make sure that everything is done with the greatest transparency possible”. But, he continued, “one thing should be clear: in respect to local content we will only hire companies registered and certified in Mozambique. Therefore, we want to launch a challenge for companies to organise because, as you can see, there are many opportunities”.
Wilson pointed out that in the construction phase Anadarko will create five thousand jobs for Mozambicans, with 1,200 vacancies earmarked for local people, particularly from the districts of Palma and Mocimboa da Praia.
He stated that the company has already created 1,500 jobs in the initial phase.
Some participants at the seminar wanted to know whether the registration and certification requirements posed a barrier for many local companies, particularly small and medium-sized companies. Wilson assured the audience that Anadarko is in favour of including local companies.
Anadarko holds 26.5 per cent of the shares in Offshore Area One. Its partners are Mitsui of Japan (20 per cent), PTT (8.5 per cent), the three Indian companies ONG Videsh, BEAS Rovuma Energy and BPRL Ventures (10 per cent each), and Mozambique’s own National Hydrocarbon Company, ENH (15 per cent).Source: AIM
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