Mozambique Oil & Gas: Partners Seek Funding for Gas Exploration in the Area 1 block

The process of securing funding from international banks for the project to explore natural gas deposits in the Rovuma Area 1 block in northern Mozambique has begun, the Mozambican minister of Mineral Resources and Energy announced in Maputo.

Minister Max Tonela, speaking at a meeting in the Mozambican capital on Wednesday with officials from export credit agencies, said that the process had finally be launched and was, “a milestone that represents the maturity of the enterprise,” according to the international press.

These agencies will guarantee the financing of US$12 billion needed for the first two liquefaction lines to be installed in the Afungi peninsula, in the province of Cabo Delgado, with a production capacity of 12 million tonnes per year of liquefied natural gas (LNG) by the consortium led by US group Anadarko Petroleum.

The minister reiterated the state’s strong commitment to the Area 1 project and announced that the government approved a plan last week to support the project, which includes the approval of licenses, work permits and visa issuance within the legal deadlines as well as the necessary documentation to export goods and services efficiently.

The Area 1 block is operated by Anadarko Mozambique Area 1, Ltd, a wholly-owned subsidiary of the Anadarko Petroleum group, with a 26.5% stake, ENH Rovuma Area One, a subsidiary of state-owned Empresa Nacional de Hidrocarbonetos (ENH), with 15%, Mitsui E&P Mozambique Area1 Ltd. (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%).(macauhub)

This site uses Akismet to reduce spam. Learn how your comment data is processed.