Mozambique

Oil and Gas

A presentation for Subsea Expo 2018

Helio Cumbi, Head DIT Mozambique

February, 2018

Mozambique

2

Afungi

Facts

Text goes here

Global rankings

World Bank Doing Business 138/190 (Mauritius: 25; Tanzania: 137; Angola 175:)

Corruption Perceptions

Index

142/176 (Botswana: 35; Kenya: 145; Nigeria: 136)

Human Development Index 181/185 (South Africa 119; Tanzania: 151; Eritrea: 179)

Economic Overview

Population 28.8 ml

*Nominal GDP $11.01 bn

GDP Growth 2017 3.1 %

*GDP per capita $382

Annual inflation rate YoY 5.65%

*Poverty ratio 54.7 % --

• Low income country

• Third fastest-growing

population in Africa

• 500,000 people

become of

employable age every

year

• Lowest 10%

education outcomes

in the world

Oil and gas sector snapshot

Mozambique leading on CAPEX for announced projects

$46.7bn, US $44.4bn, Australia $28.8bn

185 TCFs discovered

Could make

Mozambique 3rd

largest exporter in the

world

2010

Discoveries

made in Area 1

and Area 4

5th bid round awarded

2015, EPCCs to be

signed Q2

Sasol $1.4 bn

expansion.

Only

producing oil

and gas

project

Aberdeen-Pemba

MOU to be

signed next week

MAP

6

Sasol

Area 1 and

Area 4

• 1 producing block –

Sasol

• Rovuma Basin - big gas

discovery

• Area 1 consortium – 75

TCF

• Area 4 consortium –

85TCF

EPCC contracts to be

signed in Q2

• Angoche (2)

• Zambezia (2)

• Pande & Temane (1)

• Palmeira (1)

People and leadership

7

President Nyusi meeting with Anadarko in Houston

People and leadership

8

Ernesto Max Tonela: new Minister for Mineral Resources and Energy

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 15th 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

From this..

To this!

14

Thank you!

15

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