Latest News! Anadarko and ENI bosses in drive to win over Maputo

AnadarkoENI_gas_mozambique_photo

With Mozambique wrestling with runaway debt and a major political crisis, Anadarko and ENI, operators of Blocks-1 and -4, are seeking to steer their way through the obstacles.

ENI puts its case to Maputo:

While the Italian major seems to have a head start over Anadarko, it hasn’t yet advanced far enough with its plans to reach its FID, a prelude to starting work on the FLNG for its Coral field. According to our sources, project manager Stefano Maione, who is based in the UK, was in Maputo in early June to smooth over several crucial points with Mozambique’s government.

While ENI has signed up BP to buy all of its output on Coral, Maputo hasn’t yet agreed to that deal. In fact, it could take several weeks to do so for the simple reason that a price framework for the gas that ENI and BP reached doesn’t state exactly how much BP will pay for it. Sources at the mineral resources ministry say the rate for gas from Coral will depend on the spot price at the moment the field comes on stream. That will prevent anybody from being overly exposed to risk if a delay crops up.

However, ENI isn’t letting that detail slow it down. Indeed, the group is currently engaged in tough negotiations with all of its sub-contractors in the hope of getting them to lower their prices. While France’s Technip is sure to win the contract to build the FLNG with its partners Samsung Heavy Industries and JGC, no other significant contract has been formally awarded. However, Maione is continuing to promise the country that the FID will be sealed before the end of the year.

Staff changes in offing for Anadarko:

As Africa Energy Intelligence previously reported, Anadarko’s head of LNG Operations, Mitch Ingram, was also in Maputo in early June, at the same time as the Italian delegation. His aim was to make headway in developing the Golfinho field on Block-1 which is to supply two liquefaction trains in the village of Afungi. One of Ingram’s other jobs was to outline the group’s future management line-up in Mozambique to government aides and to state-owned companies involved in the sector, like ENH and INP.

During his visit to discuss the management changes, Ingram equally raised the sensitive subject of his group acquiring a “marine concession” in Pemba Port where gas tankers could put in to load LNG. The Ministry of Mineral Resources and Energy is insisting that Maputo retail full control of the port. Anadarko, however, wants a say in how it is run in order to avoid potential bottlenecks and delays in loading.

Elsewhere, Ingram submitted a new timeline for the company’s Golfinho project. Here, the FID is scheduled to be taken in the first half of next year.

Source: Africa Energy Intelligence
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