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AfrOil INVESTMENT AfrOil

“The signing of this large-scale project financ- Area 1, an offshore block in the Rovuma Basin. It
ing, less than one year after Total assumed the will eventually have two production trains, each
role of operator of Mozambique LNG, repre- with a capacity of 6.44mn tpy. The first train is
sents a significant achievement and a major due to come on stream in 2024. ™
milestone for the project,” Sbraire was quoted
as saying in the statement. “It demonstrates the
confidence placed by the financial institutions
in the long-term future of LNG in Mozambique.
This key milestone has been reached thanks to
the dedication of the Mozambique authorities
and the financial partners of the project.”
Equity in the Mozambique LNG consor-
tium is split between Total E&P Mozambique
Area 1, with 26.5%; two Japanese companies,
Mitsui and Japan Oil, Gas and Metals National
Corp. (JOGMEC), with 20%; Bharat Petro-
leum (India), with 15%; Beas Rovuma Energy
Mozambique (a 60:40 joint venture between
ONGC Videsh Ltd (OVL) and Oil India Ltd,
or OIL), with 10%; Mozambique’s national oil
company (NOC) ENH, with 10%; and PTTEP
(Thailand), with 8.5%.
The partners are building an onshore gas
liquefaction plant on the Afungi Peninsula. The
onshore facility will process natural gas from Mozambique LNG will process gas from the Area 1 block (Image: Total)

PERFORMANCE
Sylva says Nigeria aims to ensure

100% compliance with OPEC+ deal

NIGERIA TIMIPRE Sylva, Nigeria’s Minister of State for markets, and it has continued to do so since that
Petroleum Resources, said last week that his date.
country intended to meet all of its commitments Even after the OPEC+ group imposed addi-
to OPEC+, the alliance formed by OPEC, Russia tional cuts in late April, hoping to bring crude
and other non-member states. prices back up from historic lows, it continued
During a telephone call with Saudi Oil Min- to overproduce. According to the JMMC, Nige-
ister Abdulaziz bin Salman, Sylva stated that ria fell short of its targeted 417,000 bpd cut for
Nigeria was making progress with respect to May and June by 180,000 bpd in May.
bringing crude oil production down to the levels In response, the committee instructed the
stipulated under the latest version of the OPEC+ West African state to cut output levels by an
agreement. Abuja is committed to 100% compli- additional 45,000 bpd on average between June
ance, he declared. and September in order to compensate for the
He was speaking shortly before OPEC overrun in May.
released a monthly report noting that Nigeria Nigeria is not the only African country to
had brought oil output down to 1.4-1.5mn bar- come under fire from the JMMC. The commit-
rels per day (bpd) in June. tee has also criticised Angola for overshooting
Official data show that the country extracted its quotas by 100,000 bpd in May, when it pro-
just 1.4mn bpd, but unofficial sources indicate duced 1.28mn bpd, and by 60,000 bpd in June,
that the total was around 1.5mn bpd, the report when it extracted 1.24mn bpd.
said. Earlier this month, Reuters quoted unnamed
Sylva’s statements reflect the concerns previ- sources as saying that Luanda had pledged to
ously expressed by OPEC and the Joint Ministe- work towards full compliance and would make
rial Monitoring Committee (JMMC), a body set additional cuts between July and September
up to monitor compliance with OPEC+ quotas. to compensate for its previous lapses. Late
The West African country already had a track last week, though, the news agency said it had
record of exceeding its allotments by the time viewed documents showing that Angola was on
OPEC joined with 10 other crude-producing track to lift 42 cargoes of oil in September, up
states in late 2016 in a bid to steady world energy from 38 in August. ™

Week 29 22•July•2020 www. NEWSBASE .com P13