The government of Mozambique has its projection for the amount of natural gas contained in the Rovuma Basin from 170 billion to 200 billion cubic feet, according to figures presented Tuesday in Maputo by the Mozambican President.
Pointing out some of developments over the past two years in the country’s natural resources sector, Armando Guebuza said that natural gas had been discovered in Areas 1 and 4 of the sedimentary basin, whose concessions are led by US group Anadarko and Italy’s ENI, respectively, without specifying the amounts contained in each project.
Guebuza, who was speaking at the launch of the 2nd Mozambique Geology Congress, also said that the amount of taxes from production and surface work paid by companies that explore natural resources in Mozambique rose from US$1.44 million in 2012 to US$15.8 million in 2014.
“We found world-class graphite in Balama in the province of Cabo Delgado, and confirmed commercial reserves of iron and palladium, in Tete, and heavy minerals in Inhambane,” said the Mozambican President, adding that a review of the Mining and Oil laws, approved Tuesday, would promote Mozambique “as a safe destination for investments.”
In terms of oil and gas projects in the Rovuma area Natural Resources Minister Esperanca Bias, pointed to a minimum investment of US$5 billion for their launch, which, “will increase with the planned factories [for liquefaction of natural gas] in Palma. ”
Bias also said that the Mozambican government was studying the development project for a floating natural gas liquefaction platform that ENI presented for its concession and said she believes that this would not interfere with the planned LNG units in the province of Cabo Delgado.
“It is probably better to have a floating rig for those deposits [in deep water] that are a great distance [from the mainland] and that may make their exploration unfeasible,” Bias said.
Apart from Anadarko Petroleum (26 percent), Area-1’s concession is in the hands of Mozambican state company ENH (15 percent), Indian groups ONGC Videsh (20 percent) and BRPL Ventures (10 percent), Japan’s Mitsui & Co (20 percent) and Thai group PTT Exploration and Production (8.5 percent).
The consortium led by Eni (50 percent) also includes the China National Petroleum Corporation (20 percent), Korea Gas, Galp Energia of Portugal and ENH, with 10 percent each. (macauhub/MZ/PT/CN)