Mozambique Oil & Gas: LNG project must faster

The exploration of natural gas in Mozambique needs to accelerate because, otherwise, the country may miss the opportunity, the chairman of state oil and gas company Empresa Nacional de Hidrocarbonetos (ENH) told financial news agency Bloomberg.Mitha also told the agency he had been discussing the precise timeline with the government of Mozambique to “be ready with all contracts, the legal framework and resettlement process.”

Following the initial discovery of natural gas in the Rovuma basin in northern Mozambique, six years ago, US oil company Anadarko Petroleum has not yet made the Final INvestment Decision, the last and final step to proceed with the project which involves an investment of US$15 billion.

The head of Anadarko in Mozambique, John Peffer, who said he remained confident in the project despite the drop in price of raw materials, particularly oil and natural gas, said that the project in Area 1 required government approval for the relocation of about 500 people.

The block, operated by the Anadarko Petroleum group, also has as partners the Indian state groups Oil and Natural Gas Corp (ONGC), through ONGC Videsh (16 percent), Bharat Petroleum Corporation Limited (10 percent) and Oil India Ltd (4 percent), Japan’s Mitsui group, with 20 percent, the Mozambican state company Empresa Nacional de Hydrocarbonetos, with 15 percent and Thailand’s PTTEP group (8.5 percent). (macauhub/MZ)