Mozambique’s Offshore Plans Gain Vigor

February 28, 2019

Mozambique’s oil blocks (Image: National Petroleum Institute)
Mozambique’s oil blocks (Image: National Petroleum Institute)

For the joint partners in the Mozambique Area 1 project, 2019 started off on a high note with the signing of five new gas sale and purchase agreements that pushes closer to realization Mozambique's first onshore LNG facility on which the development of the offshore Golfinho-Atum gas field is anchored.

The gas field, which is operated by Anadarko, one of the largest independent and production companies in the world with extensive deepwater operations, produces natural gas and condensates with proven reserves estimated at 20 trillion cubic feet and future daily production projected to be around 200 million cubic feet.

Development of this offshore natural gas field is pegged on successful construction and commissioning of the two initial LNG trains with a total nameplate capacity of 12.88 million tons per annum (mtpa) by Anadarko and its co-ventures of ENH Rovuma Área Um, S.A, Mitsui E&P Mozambique Area1 Ltd, ONGC Videsh Ltd, Beas Rovuma Energy Mozambique Ltd, BPRL Ventures Mozambique B.V. and PTTEP Mozambique Area 1 Ltd. The partners are co-ventures in Mozambique Area 1.

Last week, Mozambique LNG1 Company Pte. Ltd., which is owned by Mozambique Area 1, signed a sale and purchase agreement with Jakarta-based Indonesian state-owned oil and natural gas corporation Pertamina for 1 mtpa for a 20-year period.

Previously Mozambique LNG1 had signed similar agreements with Bharat, Shell, Tokyo Gas & Centrica, CNOOC and Electricite de France (EDF). These agreements now total 9.5mtpa and are pivotal in the successful integration of the Golfinho-Atum natural gas development project with the LNG processing infrastructure in Mozambique.

Earlier, the LNG project developers had signed a legal and contractual deal with Mozambican authorities under the 2015 ratified Decree Law and also received approval of the Development Plan for the project located Rovuma Offshore Basin.

"The Anadarko-led Mozambique LNG project is well positioned to make a sanctioning decision in the first half of this year, as we remain on track to complete the project financing process, secure the necessary approvals, and have executed a sufficient volume of long-term SPAs, which now total more than 9.5 MTPA,” said Mitch Ingram, Anadarko Executive Vice President, International, Deepwater & Exploration in a statement last week.

For Anadarko, successful completion of projects on which commercialization of the offshore Golfinho-Atum natural gas field is anchored on, will be a step further in the company’s strategy to effectively manage its march toward an increased share of Mozambique’s offshore hydrocarbon resources.

Earlier, the company commenced the process of interpreting re-processed 3D seismic data covering the Orca, Tubarão, and Tubarão-Tigre discovery areas, in accordance with the appraisal program submitted to the Mozambican government.

Growth of Mozambique’s offshore market, especially for natural gas, is hinged on successful completion of the planned floating and onshore processing projects including those pursued by ENI and ExxonMobil.

ENI, which last year won exclusive rights to explore and develop Mozambique’s deepwater A5-A block in norther Zamezi region, has a development plan for its Mozambican natural gas production and processing projects that includes the drilling and completion of six subsea wells “in addition to the construction and installation of a advanced technology FLNG with a future onshore liquefaction facility.” Eni is spearheading the production plans for the nearly 2 billion cubic meters of gas discovered in Offshore Area 4 in Rovuma basin.

Separately, ExxonMobil, which is controls affairs in Angoche Basin, A5-B, Z5-C and Z5-D blocks in Zambezi Basin, has crafted a development plan that involves construction of two liquefied natural gas trains which will each have the capacity to produce 7.6 million tons of LNG per year and associated infrastructure.

Every single achievement in the plans by international oil companies to commercialize Mozambique’s natural gas resources pushes this East African country closer to achieving its eagerly awaited objective of being the region’s energy hub.



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