Mozambique Rovuma Venture’s final investment pre-decision announcement means that the Rovuma Basin Area 4 block’s natural gas project is in a position to move forward to the next stages of construction, development, production and marketing, the President of Mozambique said on Tuesday in Maputo.
In his speech, Nyusi said that the ceremony at which the groups involved in that consortium, ENI, ExxonMobil and China National Petroleum Corporation, announced the initial investment decision, was an important milestone towards the final investment decision that is expected to be made in the first half of 2020, according to the AIM news agency.
During the ceremony the engineering, materials procurement and construction contract were also awarded to an international consortium which should lead the construction of the necessary infrastructures for the extraction and processing of natural gas.
The block’s partners plan to start production by 2025, a process that will require an estimated investment of between US$27 billion and US$33 billion.
The project development plan was approved by the Mozambican Government in May 2019, at the same time as the legal and contractual regime for project progress was established, and is expected to provide up to 500 million cubic feet of gas per day for the domestic market.
The Rovuma LNG project is operated by Mozambique Rovuma Venture, consisting of the ExxonMobil, Italy’s ENI and the China National Petroleum Corporation groups, which hold a 70% interest in the exploration and production concession agreement, together with Portugal’s Galp Energia and South Korea’s Kogas and the Mozambican state-owned Empresa Nacional de Hidrocarbonetos (ENH), with 10% each. (Macauhub)