Oil & Gas: Construction of Coral Field Area-4 LNG platform to start in first quarter & Latest News!

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Empresa Nacional de Hidrocarbonetos (ENH) Chairman, Omar Mithá, recently said that the country is close to entering the world of gas producers. The Rovuma gas project, which is expected to help the boost the struggling economy, will come into being this quarter (Q1 2017). The three Area-4 project partners have approved their investment plans, with one remaining company expected to announce approval soon. After that, the construction of the gas platform can start. But first, ENH will need financing for its share of investment in the up to US$10billion project – which for Mithá will not be difficult, since there are already guarantees that all the gas produced for the next 20 years will be bought [by BP].

ENH holds 10% of Rovuma Basin Area-4 [Coral Field] in a joint venture with Portugal’s Galp, South Korea’s KOGAS and Italy’s ENI.

Source: O País

Galp approves investment plan for Mozambique’s Coral South LNG project

On 20 December, Galp Energia announced that its board of directors approved the investment related to the Coral South area – the first development related to the discoveries made in the Area-4 of Mozambique’s Rovuma Basin. Galp holds a 10% stake in Area-4. ENI, meanwhile, is the operator, with a 50% indirect interest through ENI East Africa, which holds a 70% interest in Area-4. ENH and KOGAS both hold a 10% interest, whilst China National Petroleum Corporation (CNPC) holds an indirect 20% stake through Eni East Africa.

The Coral South project involves the construction of a floating LNG (FLNG) unit with a liquefaction capacity of more than 3.3-million tpy of LNG. The unit will be connected to six subsea wells and will be located in the southern section of the Coral discovery. This is exclusively located within Area-4, and contains approximately 16-trillion cubic feet of gas.

Area-4 is estimated to contain approximately 85-trillion cubic feet of gas, including the large Mamba discovery.

FID, besides requiring conclusion and signature of all relevant documentation, is subject to the approval of the project by the remaining partners in the consortium, closing of the financing of the project and approval by the Mozambican government of the financing conditions related to the ENH carry. Last October, the consortium signed an agreement with BP for the entire offtake of LNG produced through the FLNG unit for a 20-year period.

Source: LNG Industry

Samsung Heavy Industries waiting for ENI to fire starting gun

The South Korean naval construction firm Samsung Heavy Industries has established its first subsidiary in Maputo, Samsung Heavy Industries Mozambique. Samsung and its partners Technip and JGC have been semi-officially chosen by ENI to build an FLNG for the Coral field on block-4 by the concession’s operator, ENI, so its move in Maputo just put the seal to the deal.

Technip set up a joint company with JGC named TP JGC Coral Mozambique in Maputo last September. In mid November, ENI gave a green light to the FLNG project on Coral and is now waiting for an agreement from its partners to confirm its final investment decision (FID). In late December, Galp, one of ENI’s partners, endorsed the operator’s plan. Samsung Heavy Industries is being represented in Maputo by Malaika Ribeiro from the auditing and consulting concern PwC Mozambique.

Source: Africa Intelligence

Energi Mega Persada in search of buyers for Mozambican asset

In December 2016, Bakrie Group’s oil and gas subsidiary Energi Mega Persada announced that it was in the negotiation process with potential buyers to take over a portion of its ownership in Mozambique’s Buzi EPCC oil and gas block.

President Director Imam Pria Agustino said that the company would reduce the size of its participating interest ownership in the block from the current 75% to between 30% and 50%. The remaining 25% stake is currently held by local partner ENH.

“We are still negotiating with [potential] buyers”, Imam said at the firm’s press conference in Jakarta.

Earlier this year, Imam said there were three investment proposals submitted to the firm in response to its plan to sell some ownership parts in the block. The company is eyeing US$96.25-million from the sale.

Energy Mega acquired the block in October 2013 for US$175-million. The block consisted of two fields that reportedly have 283-billion cubic feet of proven and probable gas reserves.

Moreover, the block also has 3.4-trillion cubic feet of gas prospective resources. The oil and gas company is facing a declining production and struggling to restructure its debt. As of September, it booked a net loss of US$67.37-million, slightly lower than the US$69.14-million net loss made during the same period last year.

Source: The Jakarta Post

Thai PTTEP slashes 2017 budget following Mozambique LNG delay

Thailand’s PTT Exploration & Production, a shareholder in Mozambique’s Offshore Area-1 gas block, has cut its capital expenditure by 40%, primarily because of the delays in sanctioning the Mozambique LNG project, a source at the company told Platts Commodity News on Tuesday 10 January.

“Originally, it [a final investment decision] was planned for late 2016, but Anadarko has since moved the FID date”, the source said.

Omar Mithá, the head of ENH, told Zitamar News in October 2016 that he expects FID on the 12-million ton per annum LNG project, which is estimated to cost approximately US$20-billion, in Q4 2017. US oil company Anadarko operates Offshore Area-1 with a 26.5% interest, PTTEP holds an 8.5% stake, and ENH holds 15%. Other shareholders are Japan’s Mitsui (20%), India’s ONGC Videsh (16%), Bharat PetroResources (10%) and Oil India Ltd (4%).

Thai PTTEP has announced its 2017 budget will be US$2.9billion. Out of the total, US$1.64-billion will be capital expenditure and the remaining US$1.26billion will be operating expenditure, PTTEP said on 10 January.

Source: Natural Gas World/Zitamar News

Nuno Uinge eyes gas sector with Dutch partner

Businessman Nuno Sidonio Uinge continues to expand in business. In Maputo, through his firm EnergyWorks, he has established a new firm, Tschudi Mozambique, specializing in the installation of offshore platforms, logistics and maritime services. To this end, he has partnered with the Dutch company Tschudi Offshore & Towage (formerly known as International Transport Contractors), which provides all kinds of maritime services, especially in the offshore oil sector.

Tschudi Mozambique hopes to benefit from the boom in Mozambique where huge offshore gas reserves have been discovered.

In addition, Uinge oversees a working group that reflects on the issue of local content in the oil and mining sectors within the local employers’ organization, the CTA.

Source: Africa Intelligence

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