Mozambique: Exxon Mobil preparing to restart Cabo Delgado project

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Mozambique: Exxon Mobil preparing to restart Cabo Delgado project

8:48 CAT | 19 Apr 2024

FILE - For illustration purposes only. [File photo: AFP]

The president of Mozambique said on Thursday that Exxon Mobil is “mobilising resources and funding” to resume its project in Cabo Delgado, and the Mozambican executive updated the multinational in Washington on security in the north.

“They were also more interested in the security situation, but it wasn’t too difficult to explain to them (…) They are keen to resume. They are in the process of mobilising resources and funding,” said Filipe Nyusi, speaking to journalists as he took stock of his visit to Washington this week.

Exxon Mobil said last July that investment in Mozambique’s natural gas is on track for a Final Investment Decision in 2025, with production starting at the end of the decade.

“A lot still depends on the security situation, which has been very well managed,” said Peter Clarke, the company’s vice president for oil and gas exploration, at a conference in Vancouver.

According to Filipe Nyusi, the government has “almost permanent conversations” with the multinational.

Exxon Mobil vice-president Walter Kansteiner said on Wednesday in Washington that the US oil company’s management is “carefully” analysing the dates for the announcement of the Final Investment Decision for natural gas in Mozambique.

“Our board and our company are analysing all these dates very carefully,” said Walter Kansteiner, vice-president for foreign affairs, questioned by Lusa after a meeting with the President of Mozambique.

Exxon’s project in Cabo Delgado – a northern province affected for more than six years by terrorist attacks – was expected to produce 15.2 million tonnes a year, but the company is currently forecasting annual production of 18 million tonnes.

Mozambique has three development projects approved to exploit the natural gas reserves in the Rovuma basin, classified as one of the largest in the world, off the coast of Cabo Delgado.

Two of these projects are larger and involve channelling the gas from the seabed to land, cooling it in a plant to export it by sea in a liquid state.

One is led by TotalEnergies (Area 1 consortium), and work progressed until it was suspended indefinitely after an armed attack on Palma in March 2021. The French energy company declared that it would only resume work when the area was safe.

The other is the still unannounced investment led by ExxonMobil and Eni (Area 4 consortium).

Source: Lusa