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Minister Mantashe cited forecast spending of leading development efforts expected to initially tight-lipped when quizzed on the company’s
ZAR1.5bn by Total on drilling offshore Mossel cost a combined $30bn. Committed off-takers plans to sell assets as part of an effort to raise a
Bay, whilst Saudi Aramco have been engaged to include EDF of France, Tokyo Gas of Japan and billion dollars in proceeds to pay down debt.
conduct a pre-feasibility study into a crude oil Centrica of the UK, which have all committed to He commented: “[Apart from Uganda], we are
refinery in Richards Bay. be off takers for the next two decades. Notable looking at other asset sales to be able to get to
Finally, in line with other sessions at AOW however, is the absence of German companies that number, and we’re working hard to identify
Virtual, natural gas emerged as a key theme in either as operators or major off-takers, despite the right ones. All of our portfolio has aspects
Minister Mantashe’s address. Speakers world- Germany being one of the world’s largest gas we’re excited about and has incremental value to
wide were excited about gas projects across importers. Tullow, but it just becomes a question of trade-
Africa and the role of gas as a bridging fuel in “It is time for German companies to play a offs in today’s world.”
the energy transition. Minister Mantashe com- greater role in the development of Mozam- Speakers agreed that there are exciting
mented: “We are re-positioning South Africa to bican gas industry. Germanys needs gas and in opportunities in Africa for Independents, which
be a serious player in the global gas market. We exchange, our companies can provide invest- will undoubtedly play a more significant role on
will promote the development of a domestic and ment capital, technical Know-how, technology the continent as the majors look to meet ambi-
regional gas market. We continue to advance and education” said Sebastian Wagner, Execu- tious emissions targets. Kosmos Energy CXO
our Gas to Power projects with the Coega Spe- tive Chairman of the German African Business Tracey Henderson commented: “[Positioning]
cial Economic Zone (SEZ) identified as the first Forum. ourselves to thrive in a longer-term low-price
Liquefied Natural Gas (LNG) import terminal.” Now more than ever, both countries must environment ... has meant high-grading and
Africa Oil Week, October 13 2020 take the opportunities presented by the devel- rationalising of our portfolios, with a focus on
opment of gas to strengthen their special bond. ILX exploration [infrastructure-led exploration]
Gas industry opportunities Mozambican exports to Germany currently and play extensions in proven basins.”
stand at $270mn yearly and are dominated by
Linked to global emissions reductions tar-
can revive Mozambique’s aluminium. This amounts to just 3% of total gets is, of course, the rise of gas as a bridging fuel.
exports.
Speakers across all sessions at AOW Virtual were
special ties with Germany African Energy Chamber, there is room for Opening day two of the event, Hon. Gwede
According to Verner Ayukegba, SVP of the excited about gas projects across the continent.
Mozambique and Germany have a special rela- growth and a significant demand for German Mantashe, South Africa’s Minister of Mineral
tionship, that was formalised when the German technology and investments in Mozambique. Resources and Energy, said “We are re-posi-
Democratic Republic established diplomatic “Mozambique is one of the most prized invest- tioning South Africa to be a serious player in the
relationships with the then newly independent ment destinations in Africa at the moment. global gas market. We will promote the develop-
Republic of Mozambique in 1975. Since then, a Mozambican companies are prepared to partner ment of a domestic and regional gas market. We
great many Mozambicans have been educated with their German counterparts to service the continue to advance our Gas to Power projects
in Germany. Another 20,000 were employed in nascent gas industry.” “We have a golden oppor- with the Coega Special Economic Zone (SEZ)
Germany as contract workers. Since the 1980s, tunity here to strengthen both countries’ econo- identified as the first Liquefied Natural Gas
Germany has spent more than $1bn in develop- mies, whilst at the same time making significant (LNG) import terminal.”
ment aid to Mozambique. Whilst this is laud- strides towards the reduction of greenhouse Nigeria LNG’s CEO Tony Attah, was similarly
able, this relationship must evolve to change gasses with the promotion of gas consumption positive in his outlook for gas, saying that he was
focus away from aid and towards investment, in to the detriment of heavier polluters like coal,” looking to increase the amount of gas NLNG
response to the numerous opportunities in gas Verner concluded. sells within the African continent, the bulk of
development and other sectors. African Energy Chamber, October 13 2020 which previously went to the US and is now
German companies need to invest in the exported to Europe.
development of new gas prospects, in the ser- Africa Oil Week, October 12 2020
vicing of the existing developments and in the EVENTS
building of a petrochemical sector in Mozam-
bique. Germany has a strong petrochemical Industry unites again
industry that can take advantage of the oppor-
tunities in Mozambique with Africa’s $1.2bn for Africa Oil Week
population providing a ready market for such
an industry. This will ultimately lead to a win- AOW Virtual, an online summit from the team
win situation for both countries. It will not only behind Africa Oil Week, took place on Octo-
help to generate economic growth, but will also ber7-8. Thirty speakers and hundreds of dele-
ensure the creation of good paying jobs, skills gates dialed in from all over the world.
developing apprenticeships and the transfer of Day one of the conference began with the
technology to Mozambique. Operators’ Strategic Outlook session, in which
Mozambique holds 100 trillion cubic feet senior representatives from Operators Kosmos
(tcf) of proved natural gas reserves. It ranks 15th Energy, Chariot Oil & Gas and Tullow Oil dis-
globally; however, the country is still largely cussed the new ventures and geographies they
underexplored. As the government continues are now prioritising within Africa. The tone of
to encourage exploration, it is likely, that the the session was pragmatic; it’s clear that Oper-
proven reserves will increase in the coming ators will need to divest certain assets in the
years to rival that of more established gas fron- new, low oil price environment. Tullow Ghana
tiers. Oil majors Total, Eni and ExxonMobil are MD Wissam Al Monthiry was noticeably

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