Mozambique’s Minister for Mineral Resources and Energy, Max Tonela, said that the government was studying with Total the date for resuming operations. The issue at stake is the improvement of security caused by the action of joint forces of Mozambique, Rwanda and SADC in northern Mozambique.
It was at the end of a meeting that Mozambican Head of State, Filipe Nyusi held with representatives of some companies that the Minister for Mineral Resources and Energy, Max Tonela, said that the government was studying with Total the date for the resumption of operations, given the improved security caused by the action of joint forces of Mozambique, Rwanda and the Southern African Development Community (SADC).
“There are already actions underway between the government and the partners in area 1 and so these regular meetings. We recently met with TOTAL, we met with ENI, today we met with GALP and also with MITSUI and the outlook is that by the end of the year we will define the conditions to sit down and decide on the resumption of the project,” the minister said.
Area 1 is under concession to the consortium led by French oil company Total, which suspended construction of the liquid natural gas production project due to the attack on 24 March in the town of Palma.
Max Tonela understands that the success of the Mozambican forces and their Rwandan and SADC allies in combating extreme violence in Cabo Delgado is gradually restoring investor confidence.
“The basic issue is that they are satisfied with the progress, but we all want a sustainable security situation that allows all the investment projects planned for that area to take place,” he added.
The Minister of Mineral Resources and Energy also said that the oil consortiums operating in the Rovuma basin are negotiating forms of partnership for the reduction of costs and maximisation of gains.
“The work that is underway between the concessionaires of areas 1 and 4 is not aimed at buying stakes, it is aimed at identifying areas of partnership, with a view to minimising or reducing the overall costs of these investments,” he said.
The governor said sharing logistics resources between the oil companies was one area of partnership that could result in cost reduction.
Besides Area 1, which was awarded to the consortium led by Total, Area 4 of the Rovuma basin was awarded to a consortium led by Mozambique Rovuma Venture (MRV), a joint venture of Exxon Mobil, Eni and CNPC (China) which holds a 70% stake in the concession contract.
Exploration of Area 4 will start in 2022 with a floating platform for liquefaction of extracted gas about 50 kilometres off the coast of Cabo Delgado, while the start of the project to explore the remaining reserves and liquefaction onshore has yet to be announced.
