Cofides impulsará la inversión de empresas españolas en Mozambique

Acuerdo firmado con el Banco Nacional do Investimento del país africano Cofides 21 de octubre de 2013 La Compañía Española de Financiación del Desarrollo (Cofides) y el Banco Nacional do Investimento (BNI) de Mozambique han firmado un convenio de colaboración para impulsar la inversión de las compañías españolas en el mercado mozambiqueño. En virtud de este acuerdo, Cofides se compromete a financiar hasta 75 millones de euros, con un límite entre 75.000 y 30 millones de euros por proyecto, mediante financiación en solitario o en cofinanciación con BNI, a condición de que las empresas españolas mantengan, directa o indirectamente, una participación relevante en las compañías del proyecto constituidas en Mozambique. Además, BNI se compromete a actuar como banco corresponsal de Cofides en Mozambique para representar a la institución española en cuestiones operativas. Éste es un acuerdo de cooperación a largo plazo entre ambas instituciones, con especial atención en los sectores relacionados con el cambio climático, las infraestructuras de transporte por carretera y proyectos ferroviarios de asociación público-privada, así como la participación en proyectos de otros sectores como el del automóvil y sus componentes, la generación de energía y transmisión, el procesamiento de alimentos o la industria agroalimentaria, farmacéutica y aeronáutica, entre otros.

Mozambique LNG Future plant situation

Anadarko expects to sign Mozambique gas supply agreements this year

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By Aaron Sheldrick

TOKYO, Sept 10 | Tue Sep 10, 2013 4:04am EDT

(Reuters) - Anadarko is talking to buyers about supplies of gas from its planned project off the coast of Mozambique, where some of the world's biggest reserves lie untapped amid rising demand in Asia for the liquefied form of the fuel.

Mozambique is emerging as a key prospect for the export of liquefiednatural gas (LNG) because of the size of discoveries there, its location en route to Asia, and its appeal to buyers trying to diversify away from big suppliers Qatar and Australia.

"We believe we will be announcing heads of agreements through the course of this year and next," Anadarko CEO Al Walker told an LNG conference in Tokyo on Tuesday, referring to initial supply contracts.

The company is on target to ship the first cargo from Mozambique in 2018 and has completed 90 percent of offshore feed work and 60 percent of onshore work, Walker said.

By the end of the year Anadarko will have invested $3 billion in its discoveries off the coast of Mozambique, which have between 35 and 65 trillion cubic feet of estimated recoverable reserves in a block known as Area 1, he said.

Anadarko is speaking to about 20 buyers, said a source close to the negotiations. The company has been in talks with buyers "all morning," Walker told Reuters after his comments to the conference. He declined to be more specific.

The company plans to start with four liquefaction plants, known as trains, Walker said. The company envisages building as many as 10 trains, he said, adding the company has 7,000 hectares of land set aside.

Anadarko has teamed up with Eni and the two are planning joint development of their respective fields. On its website, Anadarko says it is planning an eventual capacity of 50 million tonnes a year of LNG from Mozambique. (www.anadarko.com)

About 150 trillion cubic feet (tcf) of gas has been found off the east African country's shores, enough to supply Germany, Britain, France and Italy for 15 years, and the government and companies scouting wells have estimated there may be potential to double that estimate.

Japanese trading house Mitsui & Co is also a partner in Anadarko's Mozambique project and Japanese buyers including power and gas utilities have expressed interest in buying gas from east Asia to diversify their sources.

All but one of Japan's nuclear power plants are shut down in the wake of the Fukushima nuclear disaster two-and-a-half years ago, leading to a surge in demand for LNG in the country.

Underlining the potential of Mozambique's Rovuma basis, Eni said last week it had made a new gas discovery at its giant Mozambique field, opening up new acreage at what is the Italian oil and gas group's biggest ever gas discovery.

State-controlled Eni owns a majority stake of Area 4 in Mozambique's Rovuma basin, one of the planet's biggest untapped gas resources.

In April Eni said gas discoveries at its Mozambique fields contained around 80 trillion cubic feet.

Agulha/Coral gas discoveries offshore Mozambique by Eni — 700 million BOE each

03/09/2013, CET 10:20

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Eni: new high impact exploration success in Mozambique

• Download the press release (PDF) (0.04 Mb)

Preliminary estimates show that the Agulha structure could contain 5 to 7 Trillion cubic feet of gas in place

The discovery opens a new exploration play in the southern part of Area 4

San Donato Milanese (Milan), 3 September 2013 - Eni has made a new high impact discovery at Agulha exploration prospect, in Area 4, offshore Mozambique.

Preliminary estimates show that the Agulha structure could contain 5 to 7 Trillion cubic feet of gas in place. Eni and its Area 4 Joint Venture partners are finalizing the assessment of the discovery and planning the appraisal strategy.

Agulha well, which led to the discovery, is the tenth well drilled back to back in Area 4, where exploration has achieved a 100% rate of success. Agulha was drilled in 2,492 meters of water and reached a total depth of 6,203 meters.
The well is located in the southern part of area 4, approximately 80 kilometers off the Cabo Delgado coast, and was drilled to assess new exploration targets and to test the hydrocarbon potential of geological sequences which are older than the ones drilled in the Mamba complex.
Agulha encountered about 160 meters of wet gas pay in good quality Paleocene and Cretaceous reservoirs.

The discovery opens a new exploration play in the southern part of Area 4 where the drilling of  three additional wells is foreseen in 2014.

Eni is the operator of Area 4 with a 50% indirect interest owned through Eni East Africa, which holds 70% of Area 4. The other partners are Galp Energia (10%), KOGAS (10%) and ENH (10%, carried through the exploration phase). CNPC owns a 20% indirect participation in Area 4 through Eni East Africa.

Company Contacts:

Press Office: Tel. +39.0252031875 – +39.0659822030
Freephone for shareholders (from Italy): 800940924
Freephone for shareholders (from abroad): +39. 800 11 22 34 56 
Switchboard: +39-0659821
ufficio.stampa@eni.com
segreteriasocietaria.azionisti@eni.com 
investor.relations@eni.com

Web site: www.eni.com

Mozambique - The emergence of a Giant in Gas

Anadarko Sells Stake in Mozambique Gas Field for USD 2.6 Bln

Posted on Aug 26th, 2013 with tags Anadarko, Field, gas, Mozambique, News, Sells, Stake, USD 2.6 Bln

Anadarko Petroleum Corporation announced it has entered into a definitive agreement with ONGC Videsh Ltd. (OVL), a wholly owned subsidiary of Oil and Natural Gas Corporation Limited, to sell a 10-percent interest in Mozambique’s Offshore Area 1 for $2.64 billion in cash. Anadarko will remain the operator of Area 1 with a working interest of 26.5 percent.

“This transaction demonstrates our continuing ability to create substantial value through exploration and to again accelerate the value of our longer-dated projects through attractive monetizations and third-party capital,” Anadarko Chairman, President and CEO Al Walker said. “Mozambique LNG is a premier global energy project, and we look forward to working with our partners and the government to advance this world-class development.”

“As the operator of Area 1, we are very pleased to have reached this agreement with OVL, which values our pre-transaction interest at more than $9.6 billion. We expect to use the net proceeds from this transaction to further accelerate the short- and intermediate-term oil and liquids opportunities we have in the Wattenberg field, Eagleford Shale, Permian and Powder River basins, as well as the Gulf of Mexico and other evolving plays in our portfolio. Our objective with this allocation of capital will be to further increase our cash-flow growth with attractive wellhead margins, while providing additional value to our shareholders as evidenced by our recent dividend increase and continued portfolio-management activities.”

The transaction is expected to close around the end of 2013, and is subject to existing preferential rights, governmental approvals and other customary closing conditions.

Area 1 is operated by Anadarko Moçambique Area 1 Limitada and is located in Mozambique’s deepwater Rovuma Basin. The block contains the Prosperidade and Golfinho/Atum natural gas complexes that combined hold an estimated 35 to 65-plus trillion cubic feet (Tcf) of recoverable natural gas resources. In cooperation with the Government of Mozambique, Anadarko, its partners, and Eni (as the operator of the adjacent Area 4 block) continue to advance the development of an LNG park with first LNG cargoes expected in 2018.

Anadarko’s partners in Area 1 include Mitsui E&P Mozambique Area 1, Limited (20 percent), BPRL Ventures Mozambique B.V. (10 percent), Videocon Mozambique Rovuma 1 Limited (10 percent) and PTT Exploration & Production Plc (8.5 percent). Empresa Nacional de Hidrocarbonetos, E.P.’s (ENH) 15-percent interest is carried through the exploration phase.

Map data ©2014 MapIT, ORION-ME Imagery ©2014 NASA, TerraMetrics

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LNG World News Staff, August 26, 2013

Africa Oil and Gas: Mozambique’s President Leads the Charge for Exploration and Development

August 8, 2013 by Andrew Hayman

East Africa oil and gas has become a focus of attention for African new ventures for most international oil companies (IOCs), from Houston to Beijing.

Decades of indifference about East Africa were predicated on the notion that East Africa was, at best, modestly gas prone.

But the huge, high-quality gas finds in exceptional reservoirs in the offshore Rovuma Basin in Mozambique have brought IOCs to East Africa as never before. Multi-billion dollar post-appraisal deals have been done (Eni-CNPC, Videocon-ONGC-OIL); and are being negotiated (Anadarko, with many suitors).

With continuing geopolitical difficulties in North Africa and in Nigeria, where better place in Africa to explore?

THE OPERATING ENVIRONMENT

Mozambique had GDP growth of 7.5% in 2012 and is expected to reach 8.5% in 2013 – one of the highest in Africa. The industrial development promised by LNG development is predicted by the IMF to push up GDP/capita to $963 by 2017, and possibly eradicate the extremes of poverty and unemployment. The petroleum business will be a national game-changer for Mozambique.

A critical factor in Mozambique is that the state infrastructure is well-established and stable. National company ENH has existed since 1982, and it has been extensively helped in governance by NORAD, the Norwegian Aid body, since 1983. The current Chairman is Nelson Ocuane, a geologist by background, and in this position since 2007. The national oil company Empresa Nacional de Petróleo (ENP) was separated off in function from INP in 2005 and, now, as ENH, is forging its own path towards the goal of becoming a full operating company.

Generally, ENH holds equity in PSCs (5 to 30%) on behalf of the Mozambican government.

ENH has operating subsidiaries; the CMH – Companhia Moçambicana de Hidrocarbonetos, a special purpose vehicle which manages the national interest in the Pande and Temane gas fields; and the Companhia Moçambicana de Gasoducto, which manages Mozambican ownership in the natural gas pipeline from Pande – Temane to South Africa.

The Instituto Nacional de Petróleo (INP) is the state body which runs petroleum licensing. Chairman Arsenio Mabote, a petroleum engineer, has been in place since 2005. Before, he was with ENH from 1983, and head from 1995. The national oil entities are well versed in running transparent and well-ordered licensing rounds; this year’s projected round will be the fifth. Previously, INP brought a road-show to London and Houston in 2007 and was assisted by PGS Reservoir; but this time around, INP will feel that IOCs should present their credentials in Maputo.

These two institutions report to the Minister, Ms Esperança Bias – an economist who has been at the Ministry since 2005.

EAST AFRICA OIL AND GAS PRODUCTION HISTORY

Gas production and export has been established since the early 2000s when Sasol started to develop the Pande and Temane fields. The crucial experience has allowed ENH (and later INP) to develop relations and a modus operandi with IOCs: it knows how the global business works, and that a fair profit must be made. Elsewhere in East Africa there have been major misunderstandings between the different actors, leading to stand-offs and significant delays in oil and gas projects.

The patriarch of exploration, development and commercialisation is South African industrial combine Sasol, whose interest stemmed from its requirement for gas to drive its chemical plants at Secunda in South Africa.

The Pande gas field was discovered in 1961 by Gulf Oil, and Temane in 1967, but both were side-lined as gas was not of interest. Sasol Petroleum International began intensive exploration in 2003, and development of Temane started in January 2004, while Pande started in 2008. Financing for the 865 km pipeline and other infrastructure was provided by the World Bank, EIB and other lending institutions. An expansion of the plant inaugurated in 2012 by President Armando Guebuza lifted the production by 50% to 183 GJ / year. INP notes that Sasol’s current “reserves” at its Pande, Temane and Inhassoro fields are 5.5 TCF. The Inhassoro field has also flowed liquid oil, and an (ongoing) extended production test from well Inhassoro 9-z may lead to the first light oil production in East Africa.

Sasol – although not present in the Rovuma Basin bonanza – is discreetly ploughing its own furrow in Mozambique exploration. Besides the Pande and Temane gas fields, it holds the offshore block 16/19, where it made gas discoveries with Ndjika 1 & 2 and more recently has been testing deeper plays such as pre-Tertiary reefs; the Sofala block, and the M-10 block (the latter just relinquished).

A LOOK BACK AT PREVIOUS ROUNDS

The “first licensing round” according to INP was held in 2000 and 14 blocks were offered, mainly shallow water Mozambique Basin and deep water Zambezi Delta. This was preceded by licensing in 1983, when both Shell and Esso were awarded onshore tracts in the Rovuma. Also at this time, Geco Geophysical conducted a major, 13,000 km multi-client offshore seismic survey – but interest was minimal. It was premature by two decades.

The second licensing round in 2005-2006 involved just the Rovuma Basin, resulting in awards to Anadarko (Offshore Area 1), Eni (Offshore Area 4), Norsk Hydro (Statoil) (Offshore Area 2&5), Petronas (Offshore Area 3 & 6), and Artumas (Onshore Area – farmed out to Anadarko / M et P/ Wentworth). To date, the Anadarko group, the Eni group, and the Statoil group have enjoyed giant gas finds in the deep water. But Petronas’s initial drilling has been a disappointment (Marlin 1, P and A dry, 2012), which raises questions on how far southwards the play fairway might extend. Anadarko has drilled one well in the onshore block (Mecupa 1, 2009, P & A with oil and gas shows). It has now secured an extension on the current period to evaluate new seismic data, and will drill two wells in 2014. Onshore E&P has some way to go.

An 8-year licence for the onshore Buzi block was awarded to state company ENH in 2008, and there was talk of a $30 million exploration programme. But ENH farmed out a 75% stake and operatorship to Indonesian company PT Kalila; its subsidiary Buzi Exploration has been slow with exploration operations, and has just completed a 2D seismic survey and plans its first two wells shortly.

PGS assisted in the organisation of the fourth licensing round, in which huge tracts of onshore acreage were offered. Results were announced in October 2010. Just one area– the Lower Zambezi Graben (19181 sq km) was awarded, to Norwegian company DNO. Six areas – Maniamba Basin 9,367 sq km Middle Zambezi Graben 30,095 sq km Banhine 36,058 sq km Mazenga Graben 22,812 sq km Limpopo Graben 17,600 sq km Palmeira Graben 10,917 sq km were not awarded, as the offers did not meet INP’s criteria).

DNO signed an EPCC with INP for the Inhaminga Block (34% WI, with partners New Age (41%) and Harmattan Uruguay (5%) and ENH (20%). DNO undertook an exploration programme and drilled two unsuccessful wells (Chite 1, Inhaminga High1), and in June 2011 it decided to pull out.

In Q4 2012, state company ENH was awarded a major onshore exploration tract (Mazenga) in southern Mozambique by INP. The award is awaiting publication in the Official Gazette, but preparatory G&G studies have been undertaken. ENH is being advised by the UK consultancy ERCL, which also has a long-term agreement to assist INP for technical aspects of the 5th Round.

THE FIFTH LICENSING ROUND

In preparation for the fifth round, a multi-client tender was issued, resulting in contracts for service companies being awarded. On 30 October 2011, WesternGeco was awarded the contract to acquire a 8,350 km 2D regional tie programme on offshore Areas A and B, with an extensive 11,000 km 2D on offshore Area A in the Zambezi basin, which will be included in the next licensing round, as well as a preliminary 13,000 km 2D survey on offshore Area B in the Mozambique Basin. BGP GeoEast was awarded the contract to acquire at least 3,100km of 2D on onshore Area C in the Mozambique Basin. ArkEx was awarded contracts to acquire gravity and magnetic surveys, which includes the acquisition of 18,300 km of data in the Maniamba area (onshore Area GM1), 101,000 km in the Southern Mozambique Basin (onshore Area GM2), and 9,000 km in the Beira High.

The upcoming fifth round will include areas of the huge Mozambique Basin, which extends southwards from the gas-prone Rovuma for 2000km to the South African border. Parts of Areas A, B, and C will be included. However, modifications to the Petroleum Code must be enacted, which may take a few months yet.

NEW LAWS AND THE PORTUGESE CONNECTION

The Bill to amend the 2001 Petroleum Law was passed by the Council of Ministers 9 April 2013.New clauses to bring the laws up to date include addressing transparent and competitive bidding, environmental requirements, local community development and “rationalisation of petroleum resources.”

When all is in place, a new round is expected later in 2013. In a recent interview, the Minister has said that ENH may have a share of 5 to 30% as now “or more”. A part of the national stake could later be sold on to private Mozambican companies.

A factor to remember in Mozambique is the Portuguese-speaking (Lusophone) connection. The ex-Portuguese colonies of Angola, Brazil and Mozambique all help each other, politically and industrially. There have been reciprocal state visits between the Presidents dos Santos and Guebuza (oil and gas agreements were signed). President dos Santos’ daughter, Ms Isabel dos Santos, reputedly the richest woman in Africa, is investing heavily this year in industrial development in Mozambique. All are nationalistic (but pragmatic), and are striving to build up their national industrial know-now.

An appreciation of the NOC background would certainly help exploration visitors to the capital, Maputo.

PRESIDENT GUEBUZA LEADS THE CHARGE

Some clouds have lately obscured this bright future. A disquieting problem that has developed in the last few months is the resurgence of civil unrest fomented by Renamo, the activist party which lost the civil war (1977-1992) against Frelimo. Renamo complains of political and economic exclusion – and it has 1000 men under arms in its stronghold in the Gorongosa mountains (central Mozambique) to push its case. There have been skirmishes. Political dialogue continues, and President Guebuza wants to compromise. But it is not at all clear what would satisfy Renamo.

However, the President has been leading from the front, in efforts to develop the oil industry in his country. High-level delegations including the leading figures from Mozambique have visited Aberdeen in Scotland and Perth in Australia. The goal is to entice oil and gas service companies to come to Maputo to do business, and develop trading and educational links. With the prospect of 100 Tcf of gas and 12 LNG trains to develop in the biggest industrial development ever seen in Africa, there should be long queues in Maputo.

YOUR TURN

What do you think? Do you agree that Mozambique is Africa’s hottest E&P destination? Please leave a comment below.

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ANDREW HAYMAN

Andrew Hayman has over 25 years experience in the upstream oil industry. He worked in seismic operations and logistics, marketing and business development for over 10 years, and helped establish West Africa as a major focus of activity. He helped to organize offshore bid rounds for the national oil companies of Cameroon and Gabon and later managed the EMEA cartography and database unit. He also has several years of experience directing Africa data collection and publication efforts. Andrew holds a B Sc in geology and chemistry, an M Sc in geochemistry (University of Leeds) and an M Sc in stratigraphy (University of London, Birkbeck College).