Mozambique’s CIP claims Anadarko and ENI demanding “too generous contracts”

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Mozambique’s CIP claims Anadarko and ENI demanding “too generous contracts”

5:36 CAT | 05 Jul 2016

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The Centre for Public Integrity (CIP), an NGO that monitors the government, yesterday accused multinationals Anadarko and ENI of taking advantage of the state’s fragility to negotiate generous contracts in gas exploitation in northern Mozambique.

In a comment on the alleged requirements of the US and Italian oil companies, the CIP announced in Maputo yesterday that, “Mindful of the government’s distress, multinationals are taking advantage to get the maximum benefits in the gas logistics infrastructure concessions.” “Anadarko and ENI are negotiating contracts with serious implications for the state,” the analysis reads.

According to the study, Anadarko and ENI do not want to use the Pemba Logistics Base (BLP) in Cabo Delgado for their natural gas production operations, and would prefer to build their own infrastructure in the Palma district, contrary to what was initially agreed with the government.

“Multinationals want to build their own maritime terminal facility to unload bulk materials for the logistics base to support the construction of the gas liquefaction plant as well as future operations,” the study reads.

This would deprive the Cabo Delgado Ports company established by the Mozambican state to manage the Pemba Logistics Base (BLP) of its primary purpose.

Another damaging claim, according to the study, is the exclusive concession of the infrastructure clause and the geographical area where these are to be located.

“This shows the multinationals distancing themselves from the terms granted by the Government. This may be a sign that the multinationals want, and believe they can get, much more generous contractual terms than those already known,” the CIP suggests.

On the other hand, ENI and Anadarko do not intend to pay concession fees on the infrastructure that they will use in the production and distribution of LNG, the report states.

According to the NGO, if the consortium led by the two multinationals succeeds in obtaining the exclusive concession they want, any infrastructure that will be erected on the site will be dependent on a prior agreement between the concessionaires and the government.

“Mozambique has already had one negative experience caused by exclusive concessions,” the CIP adds.

Source: Lusa