Mozambique: State-owned CFM enters oil and gas business with logistics company

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Mozambique: State-owned CFM enters oil and gas business with logistics company

10:08 CAT | 30 Jul 2024

Photo: Presidente Filipe Nyusi/Facebook

The state-owned company Ports and Railways of Mozambique, one of the largest Mozambican business conglomerates, has begun operations to provide maritime support to the oil and gas sector via subsidiary CFM Logistics.

“This is a huge challenge and an extraordinary opportunity. By fulfilling this mission, we will not only be implementing a government mandate to implement oil and gas projects, but above all, we will be contributing to the development of Mozambique,” chairman of the board of directors of CFM, Agostinho Langa Júnior, said at the CFM Logistics launch ceremony on Saturday.

Mozambique has the third largest natural gas reserves in Africa, estimated at 180 million cubic feet, and currently has three development projects approved to exploit the natural gas reserves in the Rovuma basin, classified as among the largest in the world, off the coast of Cabo Delgado.

CFM Logistics will provide support to oil companies in the onshore and offshore oil and gas research and production phase, and the launch of its operations began today at the port of Nacala, in the northern province of Nampula, involving the acquisition of two tugboats and two pilot boats.

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“It will be involved in the entire production, logistics and sale of energy resources chain, taking into account the discovery of significant natural gas reserves in the Rovuma basin, which are combined with the production potential in the southern zone, in the Pande/Temane region,” Júnior explained.

For the administrator, the public company found in CFM Logistics “the answer to the government’s guidance regarding involvement in the oil and gas industry” as a “relevant player”, “making use of what we know best, which is logistics and port handling. We did this after an assessment, interaction and dialogue with partners, customers and other players in the sector”.

With almost 130 years of activity, CFM, according to Langa Júnior, sees the activity of this subsidiary as an “excellent opportunity to expand and diversify” the scope of its activity, “renew services and build new infrastructures or rehabilitate and expand existing ones to meet the needs and demand for logistics” in the oil and gas industry.

“CFM Logistics is, in our opinion, the answer to the challenges that are continually presented by concessionaires, contractors, subcontractors and other partners,” he added, noting that the company would be the “guarantor of the implementation of the strategy to promote local content” within that industry, in employment and association with national private companies.

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The launch was presided over by head of state Filipe Nyusi, who highlighted the inclusion of local content in the country’s oil and gas industry as a priority. “This moment marks the sense of mission. National companies respond to the demands of oil operators, with very existing selection criteria, and not only, in a selection universe that includes companies that operate in other geographies”.

“These activities are very important because they represent an unequivocal sign of the participation of Mozambicans in the oil and gas sector value chain and the consequent retention of value in the country, the same being possible in the context of local content,” the president added in his speech at the port of Nacala.

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