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AfrOil POLICY AfrOil

World Bank sees LNG projects lifting

Mozambique’s economic growth rate

MOZAMBIQUE THE World Bank has projected that Mozam- “Additionally, the three-year ECF [Extended
bique’s economy will grow by an average of 5.7% Credit Facility] arrangement agreed with the
from 2022 to 2024 due to benefits expected from IMF for 2022-2025 and budget support from
LNG production and a post-pandemic recovery other development partners, will further help to
in demand. strengthen economic recovery, while addressing
In an economic update released on June 23, debt and financing constraints,” the World Bank
the bank said the southeastern African country’s said.
economy grew in 2021 by 2.2% despite shocks, However, rising import prices owing to the
including the COVID-19 pandemic. Despite Ukraine conflict, further COVID-19 infection
continued significant fiscal pressures, the report waves, and the insurgency pose risks.
says, revenue collection held up and expenses With the right support, agriculture can be a
were contained. sustainable source of growth, poverty reduction
First LNG production started recently in and food security, the bank says. However, it
Mozambique at an offshore project owned by a urges more investment in public infrastructure,
partnership led by Eni (Italy), which will export agriculture research, farmers moving towards
all its output to BP (UK). “Recovery in global full participation in regional free trade agree-
demand and commodity prices will continue to ments and provision of smart subsidies to fur-
support export growth, and FDI inflows (mainly ther boost the agriculture sector. ™
linked to LNG) will sustain investments,” the
World Bank update says.
Mozambique has an estimated 180 trillion
cubic feet (5.1 trillion cubic metres) of recovera-
ble natural gas reserves, mainly offshore within
the Rovuma basin in the northern part of the
country. Development of the $20bn Mozam-
bique LNG project, operated by TotalEnergies
(France), was disrupted by an Islamist insur-
gency in the region in early 2021 but is expected
to resume once peace is secured.
The anticipated growth in the country’s
economy is also likely to be driven by increased
financial support to Mozambique after the
International Monetary Fund (IMF) provided
$456mn to the country in May. Mozambique has more than 5 trillion cubic metres of gas (Image: Anadarko)

PROJECTS & COMPANIES
Galp secures extension for exploration

of PEL 83 offshore Namibia, Sintana says

NAMIBIA NAMIBIA’S Ministry of Mines and Energy has the ministry has approved Galp’s request for the
reportedly agreed to give Portugal’s Galp and extension of the first renewal exploration period
its partners more time to prepare for explora- for the PEL 83 project.
tion work at the PEL 83 licence area offshore Sintana did not reveal the exact terms of the
Namibia. ministry’s decision, but it did state that the Por-
According to a statement from Sintana tuguese company’s work plan now provided for
Energy (Canada), which plays a role in the pro- the drilling of an exploration well at the offshore
ject via its indirect holdings in Custos Energy, site sometime in 2023.

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