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AfrOil POLICY AfrOil

Report: Security threats may linger in

Mozambique despite pact with Total

MOZAMBIQUE THE memorandum signed last week between though, it said.
Total (France) and the government of Mozam- “So far, insurgents have not directly targeted
bique may serve to improve security arrange- Total’s LNG development, and the Mozambican
ments for the Mozambique LNG project without government has already reinforced its military
improving security conditions in surrounding presence around Palma following the recent
areas of the country, according to Stratfor. surge of attacks near Mocimboa da Praia,” Strat-
The US-based intelligence company said last for wrote in a briefing dated August 25. “But
week that Total’s memorandum of understand- without significantly disrupting their activities
ing (MoU) with the Mozambican authorities across the broader Cabo Delgado region, mil-
was likely to reduce the immediate risks stem- itants’ capabilities will likely continue to grow
ming from the activity of Islamic State-affiliated and could eventually present an even greater
groups such as Ahlu Sunnah Wa-Jamo (ASWJ). threat to Total and other oil and gas companies’
These groups have become a major source of onshore operations.
concern for the French company following their Total is the operator of the Mozambique LNG
takeover of Mocimboa da Praia, a port in Cabo consortium; its subsidiary Total E&P Mozam-
Delgado that has been serving as the main entry bique Area 1 has a 26.5% stake in the project.
point for shipments of equipment and goods for The remaining equity is divided between two
the Mozambique LNG consortium, on August Japanese companies, Mitsui and Japan Oil, Gas
12. and Metals National Corp. (JOGMEC), with
Since that date, the French major has been 20%; Bharat Petroleum (India), with 15%; Beas
trying to beef up its security regime. It is keen to Rovuma Energy Mozambique (a 60:40 joint
retain its access to Mocimboa da Praia, which is venture between ONGC Videsh Ltd (OVL) and
about 75 km from the site on the Afungi Pen- Oil India Ltd, or OIL), with 10%; Mozambique’s
insula where the group is building an onshore national oil company (NOC) ENH, with 10%;
plant that will process gas from its offshore and PTTEP (Thailand), with 8.5%.
licence, known as Area 1. The partners are building a gas liquefaction
Meanwhile, Mozambique’s government has plant on the Afungi Peninsula. This onshore
also responded to the takeover of the port by facility will process natural gas from Area 1,
expanding its own military footprint at Palma, which lies offshore in the Rovuma Basin. It will
another coastal town about 84 km from Mocim- eventually have two production trains, each
boa da Praia, Stratfor noted. These measures do with a capacity of 6.44mn tpy. The first train is
not appear to have affected ASWJ’s capabilities, slated to come on stream in 2024. ™

PROJECTS & COMPANIES
Total spuds Luiperd-1X at Block 11B/12B

SOUTH AFRICA FRANCE’S Total and its partners have spudded Cape Town several weeks ago.
the Luiperd-1X well at Block 11B/12B offshore Luiperd-1X will be the second exploration
South Africa. well drilled at Block 11B/12B, the statement said.
Toronto-listed Africa Energy, a shareholder It will serve to “test the oil and gas potential in
in one of the companies taking part in the pro- a mid-Cretaceous-aged deep marine sequence
ject, announced the start of drilling on August where fan sandstone systems are developed
28. In a statement, the firm said that Total was within combined stratigraphic/structural clo-
drilling Luiperd-1X to a depth of 3,550 metres sure,” it noted.
in 1,795-metre-deep water. The French major The first well sunk at the block was Brul-
expects to finish drilling and evaluating the well padda-1X, which lies within the same sequence
in the fourth quarter of 2020, it added as Luiperd-1X. Total announced the discovery
The partners are using the Deepsea Stavan- of large hydrocarbon reserves there in 2019.
ger, a rig owned by Norway’s Odfjell Drilling, Jan Maier, Africa Energy’s vice-president for
to sink the new exploration well. The rig was exploration, said he was optimistic about the
mobilised from Norway in July and reached prospects for another discovery at Luiperd.

Week 35 02•September•2020 www. NEWSBASE .com P15