Mozambique expects significant revenues from new natural gas projects from the end of the 2020s, according to projections from Mozambique’s National Oil Institute (INP).
The INP projections stipulate that initial government revenues from the production of liquid natural gas (LNG) will be made up of withholding taxes and profit sharing agreements, and will therefore remain limited.
The INP said significant revenues “derived from corporate income tax should begin to enter the state coffers by the end of the 2020s, or beginning of the 2030s.”
Mozambique expects to start receiving revenues from new Rovuma basin natural gas projects from 2021, but values are expected to remain relatively low until 2027.
Joint exploration revenues for Area 01 and Area 04 are expected to be around US$500 million per year by 2027, approaching the US$1 billion mark after that, which could be exceeded by 2031.
The Government predicts that from 2034 – 16 years from now – it will tax of around US$2.7 billion in the most modest years and over US$3 billion dollars in years with bigger results
The final investment decision by the Area 01 consortium, led by Anadarko, is expected in the first quarter of 2019.
In Area 04, headed by oil companies Exxonmobil and Eni, investment is already moving forward and production is expected to start in 2022. (macauhub)