The American oil company ExxonMobil has stated that the planned start of liquefied natural gas (LNG) production in 2030 depends on improved security conditions in the province of Cabo Delgado, northern Mozambique, which has been affected by terrorist attacks since 2017.
Speaking in Maputo during the 10th Mozambique Gas & Energy Summit and Exhibition, Arne Gibbs, ExxonMobil’s General Manager in Mozambique, said: “The end of the conflict is crucial to ensure a sustainable development environment,” while recognizing the stability provided by the Defense and Security Forces (FDS).
Cited by Lusa, Gibbs assured that after the lifting of the “force majeure” clause invoked in 2021 by TotalEnergies, leader of the Area 1 consortium, ExxonMobil will begin exploration in Area 4 of the Rovuma Basin, potentially starting work in 2030, with initial investments exceeding $300 million, including infrastructure expansion and the creation of at least 400 direct jobs for Mozambicans.
“The Final Investment Decision (FID) will only be possible after the force majeure is lifted, which had suspended operations in Area 1. We believe Mozambique’s energy future is bright. With stability and cooperation, this will be a transformative milestone not only for the country but for the entire region,” he added.
In October, McDermott—a leading integrated engineering and construction solutions provider for the energy sector—through a consortium with Saipem and China Petroleum Engineering and Construction Corporation, received a Front-End Engineering Design (FEED) contract for Rovuma LNG Phase 1 in Mozambique. The project represents a significant development for the country and offers an important opportunity for economic growth. The Rovuma LNG project includes the liquefaction and export of natural gas extracted from offshore Area 4 fields off the Afungi Peninsula in Mozambique.
“LNG is shaping an entirely new era of energy solutions, and McDermott plays a significant role in this global shift with over 60 years of LNG experience,” said Rob Shaul, Senior Vice President of McDermott’s Low Carbon Solutions business.
The Exxon project in Cabo Delgado—a province affected by terrorist attacks for nearly seven years—initially estimated an annual production of 15.2 million tons of gas, but the company now anticipates 18 million tons per year.
Arne Gibbs had indicated on May 3, 2024, the possibility that the investment decision could be made by the end of 2025. “We are optimistic, we are moving forward, but we recognize that challenges remain,” he said.
The Area 4 concessionaires are Mozambique Rovuma Venture (MRV) S.p.A, a joint venture co-owned by Eni, ExxonMobil, and CNODC (70%), the Empresa Nacional de Hidrocarbonetos E.P. (10%), Galp Energia Rovuma B.V. (10%), and KOGAS Mozambique Ltd. (10%).
Mozambique has three approved development projects for the exploitation of the Rovuma Basin natural gas reserves, ranked among the largest in the world, all located off the coast of Cabo Delgado province.
Source: Diário Económico