Final investment decision for Mozambique’s Area 1 block, scheduled for March/April

12 February 2019

A final investment decision for the exploration of natural gas deposits in the Rovuma Basin Area 1 block, northern Mozambique, is expected to be made in March/April, said the chairman of state-owned oil and gas company Empresa Nacional de Hidrocarbonetos (ENH).

Omar Mithá, speaking on Sunday in New Delhi, India, recalled that an Indian company has already signed a contract for the purchase of natural gas to be extracted in that block and added that “the first shipments are expected to reach India in 2024.”

Mitch Ingram, executive vice president of the Anadarko Petroleum group, responsible for international focus, deep water and prospecting, said earlier this month that the contract signed with a subsidiary of the China National Offshore Oil Corporation (CNOOC) group “is another customer in a growing customer base in the Asia-Pacific,” region, “which demonstrates” the progress we are making towards a final investment decision in the first half of 2019.”

The ENH chairman, quoted by Reuters, also said that Mozambique’s geographic location is strategic in terms of natural gas imports and that the country does not have the same geopolitical challenges as the Middle East.

Mithá added that the partners of the Area 4 block, led and operated by Italy’s ENI and US group ExxonMobil, are expected to announce their final investment decision next July.

The project for the exploration of natural gas deposits in the Area 1 block will have two onshore plants with a combined capacity of 12.88 million tonnes per year to process the natural gas extracted from the Golfinho/Atum fields.

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 BV (10%), and PTTEP Mozambique Area 1 Limited (8.5%). (macauhub)