LNG Mozambique: ENI’s Rovuma basin FID in November – Omar Mithá

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LNG Mozambique: ENI’s Rovuma basin FID in November – Omar Mithá

12:06 CAT | 24 Oct 2016

Noticias (File photo)

ENI’s final decision on investment (FID) on natural gas exploration in the Rovuma basin Area 4 in Cabo Delgado should be taken by the end of November, according to National Hydrocarbon Company (ENH) chairman Omar Mitha.

Speaking on Thursday in Maputo during the second meeting of the National Business Council, Mitha said that the ENI decision was an essential step for the progress of the projects.

The National Business Council meeting, sponsored by the Confederation of Economic Associations of Mozambique (CTA), was intended to publicise business opportunities for small and medium enterprises in projects developed by ENH and Sasol.

Mitha also referred to Area 1 projects operated by US company Anadarko, where FDIs are expected in 2017.

Despite the not very favourable global context, Mitha said, Mozambique remained attractive to the multinationals that dominate the global natural gas market, pointing to the recent entry of ExxonMobil, a US company with extensive global experience in the natural gas sector, as an example.

Highlighting opportunities for Mozambican companies, Mitha referred first to the project operated since 2004 by Sasol as having many opportunities for domestic companies in maintaining the 850-kilometre pipeline between Inhambane and South Africa.

“As highlighted during the meeting, this project is at an already advanced stage, but even so there are opportunities in the maintenance, catering and finishing areas,” he noted.

The Sasol representative at the meeting announced the opening in Maputo of a procurement department operating since last January and intended to bolster the selection of national companies in projects developed by the multinational.

This department had been based in South Africa since the start of the Pande and Temane project in 2004, but was now based in Mozambique in response to the need to promote more local content.

At the same time, the ENH also announced the creation of its own local content department, mandated to answer the need for training, corporate connections and financing, the last of which in coordination with specialized financing entities.

CTA Vice President Rogério Samo Gudo recognised that there are weaknesses and limitations to the Mozambican companies entering the hydrocarbons market, but said he was confident local SMEs were ready to restructure in order to meet large companies’ procurement requirements, especially as regards best practice guidelines.

The debate was part of a country-wide series of events discussing the proposed Law on National Content, expected to be approved shortly.

Source: Noticias