Government strategic decision aims to strengthen the economy and promote the development of the oil sector
The Council of Ministers of Mozambique, meeting today at eleventh Ordinary Session, approved the Development Plan (PdD) of the Northern Coral Project FLNG, marking a decisive step towards the exploitation of the natural gas resources of the Coral Eocene 441 deposit, located in Area 4 Offshore From the Rovuma Basin. This advance reflects the country's continued efforts to maximise natural gas production and strengthen its position as a regional leader in Liquefied Natural Gas (LNG) production, to meet the growing global demand for LNG, as well as to take advantage of the window of opportunity, given that natural gas has been elected the transition energy.
The North Coral FLNG floating platform will be a replica of the South Coral FLNG model, proven effective for deep water production, which has already exported 100 FLNG positions to the world market. The choice of this project was based on technical and economic analyses that ensure optimal operation, with investments estimated at USD 7.2 billion. MRV, the project operator, justified this option because it is the most effective way to develop and exploit the deposit in the technical and economic perspectives, obtaining advantages, maximising gains for all parties involved, cost optimisation and speeding up entry to the market to ensure the potential demand for LNG.
According to the approved Development Plan, over the 25 years of operation, the government will raise 23 billion US dollars in revenue, taxes and other contributions. This project also provides for the availability of natural gas to the domestic and condensed market produced for the development of industrialization projects in the country and, to be monetized by the National Hydrocarbon Company E.P. ("ENH), as well as the hiring of local workers and the implementation of a Succession Plan to increase the qualification of Mozambican workforce in the sector.
According to the PCA of the INP, Nazário Bangalane, the approval of the Northern Coral Project FLNG represents a milestone in the country's energy strategy and a significant advance in the sustainable exploitation of natural resources, ensuring that Mozambique strengthens its presence in energy markets at national, regional and global levels. Bangalane also said that "the North Coral FLNG is not only a source of revenue, but a driver for economic and social development, promoting the creation of employment and training of Mozambican professionals".
They are dealers of Area 4 Offshore from the Rovuma Basin to Mozambique Rovuma Venture (MRV), a consortium that includes Eni, ExxonMobil and China National Petroleum Corporation (CNPC), which holds 70% participation, ENH, Galp and KOGAS, each with 10% participatory interest.
For more information, please contact the National Institute of Petroleum, located on Rua dos Desportistas No.259, Maputo, by numbers 21248300 or 839511000. You can also write to the email comunicacao@inp.gov.mz and visit our Facebook and LinkedIn pages to be up to date with this and other highlights.
