Looking good for the long-term

offshore rig club of mozambiqueMozambique's gas comes mostly from the offshore deep water. (Image source: club of mozambique)Having for a long time been regarded an uninteresting upstream play, Mozambique’s offshore deepwater burst onto the global gas scene in 2010 and 2011, after Italy’s Eni, US’ Anadarko and Norway’s Statoil made large gas discoveries in the area

Success spread through the Rovuma basin to waters in neighbouring Tanzania and within a relatively short time more than 100 tcf of recoverable gas reserves were proven up and LNG export projects launched. Despite the oil price downturn since mid-2014, work is ongoing in Rovuma waters, although there are signs of slippages.

A floating liquefaction plant (FLNG) is still on schedule to come onstream at Eni’s Coral project in 2019, while Anadarko’s hopes for an FLNG installation to be completed the same year at the Golfinho discovery might by now have been pushed into 2020. An FID was targeted for completion this year, but might be signed in the earlier parts of 2016. Targets for an Anadarko-led large 12 mmtpa onshore-located LNG plant have been set to 2022, but here signs of slippage are really starting to abound, not least because long-term LNG offtake commitments are proving hard to secure.

You can read the rest of this article on page 26 in the latest issue of Oil Review Africa.

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
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