The first shipments of natural gas to be extracted in the Coral Sul project, a set of six wells with depths ranging between 1,500 and 2,300 metres that is part of the Area 4 block of the Rovuma basin, operated by Italian group ENI, is expected to be sent to customers in 2022, said the chairman of Mozambican state oil and gas company Empresa Nacional de Hidrocarbonetos (ENH).
Omar Mithá recalled that the final investment decision had been made in 2017, with the completion of the floating natural gas extraction and liquefaction platform being built in three countries, South Korea, England and Singapore, costing US$4.7 billion.
The ENH chairman also told Mozambican newspaper O País that it is now possible to anticipate future revenues generated by the project, whose natural gas already has credible buyers, including state-owned companies from developed countries that have signed medium- and long-term contracts.
Mithá said that one of the ways available to ENH to finance its participation in Rovuma projects is the early sale of the gas, “for which we would have to convince the other shareholders that we wanted to receive in kind, and then put that gas on the market in advance,” but recently it hired financial consultants Lazard Frères, Lion’s Head Global and Société Générale to try to raise US$2 billion on the international market.
In a recent interview with financial news agency Bloomberg, Mithá described going to the markets as “extremely urgent,” and the investor promotion programme includes travel to Asia, the Middle East, and South Africa.
Lazard, which is already a legal advisor to the Mozambican government on the renegotiation of “hidden debts,” will also provide legal assistance in the financing of ENH’s stake in Area 1 of the Rovuma basin. The project’s operator is US oil group Anadarko Petroleum, and Société Générale will focus on funding while Lion’s Head will be the consultant responsible for advising ENH on its stake in the Area 4 project. (macauhub)