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INVESTMENT OPPORTUNITIES

Potential investment areas in the oil and gas sector in mozambique

OVERVIEW OF THE SECTOR

Mozambique has one of the world's main reserves of Natural Gas, following the discoveries made by the operators of Area 1 and 4 in the Rovuma Basin, representing approximately 180 trillion cubic feet (TCF). Taking into account the announcements of the Final Investment Decision for the Rovuma Basin projects, the recent announcements on the approval of funding for the Area 1 project, the concessions resulting from the 5th and 6th Competitions and other global factors, in combination with the investment prospects at Midstream and Downstream, the gas sector appears as one of the most important investments that will allow a more sustainable and inclusive energy transition.

Government commitment to the Investment Environment

Opportunities for Investors
  • Public competitions for new products Areas onshore planned on the basis of updated mapping.
  • Opening for requests for expressions of interest for direct/simultaneous negotiation
  • Potential for coal-related gas and local and regional markets.
State guarantees and support
  • Transparent contractual regime (model concession or production sharing contract).
  • Institutional support in data availability and regulatory facilitation (INP, MIREME).
  • Incentives for the industrialization and household use of gas

 

PPA Pande-Temane

  • Production started in 2004;
  • Current capacity: 197 MGJ/a;
  • 80% For Export and 20% For Local Market;

Project Rovuma LNG

  • PD approved in May 2019;
  • 500 MMSCFD for the Internal Market;
  • Investment $23.6 billion;
  • Two units of 7,6 MTPA each;
  • Pre-FID October 2019.

Project South Coral FLNG

  • PD approved Feb 2016;
  • FID June 2017;
  • Construction of 100% FLNG;
  • First Predicted Production for 2Q 2022;
  • Investment $Seven billion.
  • 3.4 MTPA.

PSA Inhassoro-Temane

  • PD approved 2016, amendment 2020;
  • 30 000 tpa LPG; 4 000 bbl/d light oil;
  • Energy production 420MW;
  • FID Feb 2021;
  • First Predicted Gas Production For 2024;
  • Investment $0.98 billion.

Project Mozambique LNG

  • PD approved Feb 2018
  • 400 MMSCFD dedicated to the domestic market
  • Two Units With 6.08 MTPA capacity each
  • FID 18 June 2019
  • Investment: $19.8 billion.
  • Investment: $19.8 billion.

NATURE GAS (UPSTREAM)

To enter into partnership with a Local company, to obtain participation in the areas, which may be through Competition, Direct award and negotiation:

  • Investment in the mature field: Buzi
  • Investment in the transport of North-South gas, which should also provide gas to
  • Mozambican cities located along its route.
  • Investment prospects for the ROMPCO pipeline.

The Logistics Base

The Pemba Logistics Base is designed as an integrated service centre to provide logistical infrastructure and services as a single counter to support the Oil and Gas Industry at all stages (exploitation, development and production).

Services and facilities available:

  • Container and warehouse terminal
  • Traffic and Supply Base
  • Underwater Construction
  • Tube-making plants
  • Supply plants
  • Fuel terminals
  • Commercial Port
  • Spooling Base
  • Ship repair facilities.

Maritime infrastructure:

  • Palm

  • MOF

  • TERMINAL LNG

  • Commercial Port

Pemba

  • Port and logistics base
  • Terminal aggregates
  • Assembly and shipyard
  • Commercial port

Other Areas

  • Gas Processing Infrastructure: cost and fee;
  • Capital partnership in Upstream: Area 1 and Area 4;
  • Shareholder participation partnership in all downstream activities: JV;
  • Shareholder partnership on LNG lines: JV.
  • Facilitating the development of common infrastructures to support
  • oil industry (4’500ha industrial and 2’500ha commercial area, hiring investors on a BOT base);
  • Invest in residential and commercial facilities (more than 2,500 ha);
  • technical partnership for the provision of logistical services;
  • Technical partnership to carry out cabotage and establish a maintenance facility
  • finance, build and operate exclusive BOT-based maritime concessions;
  • Own and operate export terminal.
  • Investment in Shipping JV COMPANY ENH-LNG CARRIER
  • Small-scale domestic and regional LNG supply
  • LNG for domestic or regional consumption.

NATURAL GAS (DOWNSTREAM)

The main downstream opportunities fall within the scope of the launch of the Public Competition called the Domestic Gas Opportunities, through which Yara, Shell and GL Energy for Fertilizers (Amonia/Urea), Liquid Gas (GTL), Energy Generation were awarded; which at the moment there is no significant advance, and these proponents have shown a lack of interest in continuing these projects due to environmental commitments.

Mozambique Basin : PPA and PSA

  • LPG Storage and Transport Infrastructures
  • Investment in the Processing, storage (domestic use) of light and condensed oil
  • Investment in the Ressano Garcia Thermal Plant CTRG , (resulting from Sasol 's sale of assets) , which could be through EDM
  • Investment in Natural Gas Distribution Project in Maputo (ENH)
  • Investment (by partnership with the company awarded-Marco 2021), gas supply to the Temane Thermal Power Plant project and LPG for local consumption in the surrounding areas of the Project.

Rovuma Basin

  • Approved 400 mmscfd for use in household projects.

  • Gas to Power – Energy Generation for Domestic Industry and Consumption – Nampula

  • Fertilizers and other petrochemicals
  • GTL Project or Methanol
  • Guaranteed 500 mmscfd for domestic use
  • The opportunity to invest in the GPL factory for the construction, processing, storage and distribution of GPL – it should be noted that this is the commitment of Area 4 in the approved Development Plan
  • Opportunity for investment in condensate processing facilities.
  • Palma Illustration of the Urbanization Plan for Palma (18,000 ha)
  • Planned ventures
  • Industrial Park: 4.923 ha
  • Business Center: 609 ha
  • Congress Centre: 534 ha
  • Trade & Services: 256 ha
  • Accommodation/equipments: 3.532 ha
  • Tourism: 179 ha
  • Free Spaces and Sport: 3.276 ha

i. Technical and professional services
a. Analytical Laboratories – for testing and
Infrastructure certification (e.g. NDT Facilities)
b. Business development centre – program
Certification (ISO 9001, ISO 14001)
c. Development of skilled workforce – establishment of professional training center- Practical Training Facilitation Centers (PTFC)

a. Partnerships (or establishment) with financial institutions
institutions to facilitate access to credit by companies and advice on financing

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Regulating the Oil Resources of the Country Towards Energy Efficiency and Sustainability

Hydrocarbon Research

Policy and Legal Framework

News

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AREA 1

Following the 2nd open competition for the granting of areas for the research and production of hydrocarbons, the companies Anadarko Mozambique Area 1 and the National Hydrocarbon Company were awarded Area 1 in offshore environment of the Rovuma Basin. The area is located in the northern part of Cabo Delgado Province, in shallow to very deep waters. The Hydrocarbon Research and Production Areas Grant Agreement (CCPP) was signed on 20 December 2006 and is effective as of 1 February 2007.

PROSPERITY DISCOVERING AREA

Median estimate of 43 tcf (cubic foot trillions) of gas.

4 Transzonal Reservoirs:

  • Upper North Oligocene;
  • Upper South Oligocene;
  • Oligocene Lower;
  • Upper Eocene;

TUBARAN DISCOVER AREA

Median estimate of 3.4 (cubic foot trillions) Tcf of natural gas.

THE AREA OF DISCOVERMENT

Median estimate of 8.4 Tcf (cubulated foot trillions) of natural gas

The Paleocene Reservoirs.

THE AREA OF DISCOVERMENT

Tigris Shark Discovery Area (1254 km2), has 3 reservoirs of the Cretaceous (K1,K2 and K3), the K2 being the best in Orca and Shark-Tigre and has a median estimate of 0.323 Tcf (cubic foot trillions) of natural gas.

UNKNOWN TUGRE AND ORCA (CRETACICO LEQUE 1, 2 E 3), ROVUMA OFFSHORE AREA 1

The complete technical evaluation of the potential of the Cretaceous in Area 1, between the Areas of Discovery Tubarão Tigre and Orca, determined that it contains small, discontinuous and low quality reservoirs, and this would probably present significant challenges in the supply of trade amounts of gas. Of the three reservoirs of Cretaceous (K1,K2 and K3) evaluated, the best is K2 in Orca and Shark-Tiger that has an average resource of 0.323 Tcf (cubic foot trillions) of natural gas.

FOUND OUT ORCA (LECK OF MEDIO PALEOCEN), ROVUMA OFFSHORE AREA 1

This discovery was made in Area 1 by Anadarko in 2013 through borehole Orca-1, whose reservoir is the age of the Middle Paleocene, was subsequently evaluated by the holes Manta-1, Orca-2, Orca-3 and Orca-4.

The discovery is located about 10 km from the coast line, 250 km from the city of Pemba. This reservoir is of Middle Paleocene age and is not shared. The average estimate of resources is about 8.4 Tcf (cubulated foot trillions) of natural gas in situ, according to estimates submitted by Total.

The reservoir in the Orca discovery lies at depths ranging from 4000 to 5000m below the mid sea level, and the water column from about 600m to 1200m. The extension is about 30 km.

UNCOVERED TUBARON (EOCENO), ROVUMA OFFSHORE AREA 1

This discovery was made by Anadarko in January 2011 through the Jaw-1 hole and evaluated by the Shark-2 hole (negative) in 2013. The discovery is located about 25 km from the coast line, 50 Km of the Northeast of the district of Mocímboa da Praia and 200 Km of the Northeast of Pemba City.

The reservoir is completely in Area 1. The average estimate of resources is about 3.4 tcf (cubic foot trillions) of gas in situ.

The reservoir is at a depth of 3500 to 4000 metres below the average sea level. The water column ranges from 800 to 1200 meters. The extent of the Shark discovery is about 20 km east-oriented.