Page 12 - AfrOil Week 23

AfrOil INVESTMENT AfrOil

Artist’s rendition of Rovuma LNG complex (Image: Galp)
He did not specify when an FID could be made, come online in 2024. Operator Total recently
beyond the fact that it would not be this year. But had to cut personnel at the site and scale down
his dismissal of Zacarias’ comments suggests activity after an outbreak of COVID-19 among
that perhaps it will not be next year either. its staff.
Mozambique – one of the world’s least COVID-19 is not the only obstacle for the
developed countries – is counting on LNG to LNG developers in Mozambique. In gas-rich
become a major new source of exports and rev- Cabo Delgado Province, where the LNG pro-
enue. However, the coronavirus (COVID-19) jects are being developed, an Islamist insurgency
pandemic has slowed momentum somewhat. has been underway since 2017, and now appears
Nonetheless, progress is being made, and two to be escalating.
other liquefaction projects are currently under In April, the insurgents stepped up from
construction in the same area where Rovuma attacking remote villages to appearing in major
would be located – Mozambique LNG and towns in the province and have started publi-
Coral South floating LNG (FLNG). cising their aim of replacing the Mozambican
Indeed, ExxonMobil is also involved in the government with an Islamic one.
Eni-led Coral South, which is due to enter ser- It comes amid rising concerns among locals
vice in 2022. The FLNG vessel being used for over how the income generated by the LNG pro-
Coral South will be the first to be deployed in jects will be spent and whether locals will see any
deep waters offshore Africa. It will have a capac- benefits.
ity of 3.4mn tonnes per year (tpy). The insurgents have not targeted the LNG
When ExxonMobil first announced that industry this year, but last year separate attacks
Rovuma had been delayed, it noted that Coral on convoys resulted in the death of an Anadarko
South remained on track. Petroleum consultant, as well as several people
The two-train Rovuma LNG project will being injured.
have a capacity of 7.6mn tpy. It had previously If Mozambique fails to bring the insurgency
been anticipated to start up in 2025, but the under control, additional security costs and
schedule will now be adjusted to account for the measures will become an increasingly important
delay in reaching FID. consideration for the developers of the country’s
The 12.9mn tpy Mozambique LNG is due to LNG projects. ™

PERFORMANCE
Libya’s NOC says El-Feel is back online

Sharara field also resumes crude oil production but shuts down once again after armed attack

LIBYA WITHIN the last week, Libya’s National Oil south-western part of the country.
Corp. (NOC) has succeeded in resuming According to several separate company state-
development operations at El-Feel, one of the ments, NOC brought Sharara back on line on
country’s largest oilfields, but has also suffered June 6 and was able to do the same at El-Feel
setbacks at Sharara, another major site in the on June 7.

P12 www. NEWSBASE .com Week 23 10•June•2020