MAPUTU, 24 July. - (ANA) - In spite of the drop in oil prices and the global health crisis, Total signed a $14.9bn senior debt financing agreement for Mozambique LNG on 17 July, after acquiring the asset from US-based Anadarko in September 2019.

 

Patrick Pouyanné, the chairman and CEO of the French oil major, made this gas megaproject the priority mission of Nicolas Terraz, who joined Total Exploration & Production (E&P) in July 2019 as head of sub-Saharan Africa.

 

The Mozambique LNG project involves plans to construct the country’s first onshore liquefied natural gas (LNG) plant, including the development of the Golfinho and Atum gas fields located within the Offshore Area 1 concession in Cabo Delgado Province, in northern Mozambique, as well as the construction of a two-train liquefaction plant with a total capacity of 13.1 million tonnes per annum.

 

Mozambique LNG’s available reserves are substantial. According to sector research firm Rystad Energy, around 3.6 billion barrels of oil equivalent could be extracted from Mozambique’s subsurface, or twice the amount extracted by the BP-operated Greater Tortue complex, a cross-border project in Senegal and Mauritania. Rystad Energy also reports that the gas could be extracted at a competitive cost of around $6 per thousand cubic feet, i.e., a price on par with that of Greater Tortue, but $2 less than the cost of the NLNG consortium’s Train 7 project, the largest Nigerian gas project currently under development. -(ANA)

 

AB/ANA/24 July 2020 - - -