Mozambique Oil and Gas A presentation for Subsea Expo 2018 Helio - PowerPoint PPT Presentation

Mozambique Oil and Gas A presentation for Subsea Expo 2018 Helio Cumbi, Head DIT Mozambique February, 2018

Mozambique 2

Afungi

Facts Text goes here Economic Overview • Low income country • Third fastest-growing Population 28.8 ml population in Africa *Nominal GDP $11.01 bn • 500,000 people become of GDP Growth 2017 3.1 % employable age every *GDP per capita $382 year • Lowest 10% Annual inflation rate YoY 5.65% education outcomes in the world *Poverty ratio 54.7 % -- Global rankings 138 /190 (Mauritius: 25; Tanzania: 137; Angola 175:) World Bank Doing Business 142 /176 (Botswana: 35; Kenya: 145; Nigeria: 136) Corruption Perceptions Index (South Africa 119; Tanzania: 151; Eritrea: 179) Human Development Index 181 /185

Oil and gas sector snapshot Mozambique leading on CAPEX for announced projects $46.7bn, US $44.4bn, Australia $28.8bn 2010 Sasol $1.4 bn Discoveries expansion. made in Area 1 185 TCFs discovered Only and Area 4 Could make producing oil Mozambique 3 rd and gas largest exporter in the project world 5 th bid round awarded Aberdeen-Pemba 2015, EPCCs to be MOU to be signed Q2 signed next week

MAP • 1 producing block – Sasol Area 1 and • Rovuma Basin - big gas Area 4 discovery • Area 1 consortium – 75 TCF • Area 4 consortium – 85TCF EPCC contracts to be Sasol signed in Q2 • Angoche (2) • Zambezia (2) • Pande & Temane (1) • Palmeira (1) 6

People and leadership President Nyusi meeting with Anadarko in Houston 7

People and leadership Ernesto Max Tonela: new Minister for Mineral Resources and Energy 8

Decision makers 9

Successes • Floating LNG Area 4 led by Eni reached final investment decision for their FLNG project in June 2017. Two major contracts EPCIC and Subsea production systems were awarded to British companies. TechnipFMC headquartered in London and BHGE working out of their Aberdeen base. • Exxon bought into Area 4 making them joint operator and will take lead on onshore development • Area 1 - Moving ahead slowly.. • Domestic Gas Projects approved Afungi Gas To Liquids - Shell Fertilizer – Yara Gas to power

Challenges • Institutional capacity • Infrastructure • Access to finance • Security • Local content? • Government coordination (top down messages have not reached implementers) • Bureaucracy and ease of doing business

Aberdeen Pemba MOU + HMG To be signed on 15 th February • • Cooperation on economic growth, education and business support • Local government and Minister for Energy to attend • O&G mini-conference, engagement with local businesses • MAGTAP • SOGA + JOBA • Chevening • Doing business

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To this! 14

Thank you! East Africa HVC Team Mozambique Team John Crawford – Regional Director, Joanna Kuenssberg – High Phil Haymes – Specialist, O&G Team Commissioner Helio Cumbi – Head DIT Calum McCallum – East Africa HVC Inayah Sultan – Trade Lead Officer DIT Contact: Helio Cumbi, Head of DIT – Mozambique Mobile: +258 821403636 Email: helio.cumbi@trade.gov.uk 15