Page 13 - GLNG Week 48 2020

GLNG AFRICA GLNG

ExxonMobil, Total in talks over

Mozambique resource-sharing deal

PROJECTS & EXXONMOBIL and Total are reportedly in over 2.4 trillion cubic metres of gas.
COMPANIES talks over how to divide up gas resources from Total and its partners already took an FID
a field that straddles their respective LNG devel- on the $20bn Mozambique LNG last year, and
opments off the coast of Mozambique. over the summer secured nearly $15bn in exter-
ExxonMobil is leading a consortium that nal financing for the initiative. That project will
is developing the Rovuma LNG project off the produce up to 13.1mn tpy of LNG from the
southern African country, while Total is in Golfinho and Atum fields in Area 1, thought to
charge of the Mozambique LNG venture. Nego- hold 2.1 trillion cubic metres of gas. Commercial
tiations between the pair over resource-sharing operations are anticipated to start in 2024.
also involve Mozambique’s government, which The current resource-sharing contract was At stake are an
will have the final say over any settlement deal, signed by Italy’s Eni and Anadarko, which is now
Reuters reported on November 25 citing sources. part of fellow Texas-based producer Occidental estimated 680bn
The field in question contains gas that is Petroleum. Eni sold a stake in Rovuma LNG to
thicker and therefore cheaper to recover and ExxonMobil in 2017 even though it remains a cubic metres of
convert into LNG than the projects’ other depos- participant in the project, while Anadarko trans-
its, according to Reuters. How much each project ferred Mozambique LNG to Total last year. gas straddling
could extract from the field was settled in a 2015 At stake are an estimated 680bn cubic metres the two projects.
“unitisation” or resource-sharing agreement, the of gas straddling the two projects, according to
news agency said. Reuters. The resources are split evenly under the
However, the coronavirus (COVID-19) pan- 2015 agreement.
demic and the resulting collapse in gas prices this “As a matter of practice, we do not com-
year mean both ExxonMobil and Total are under ment on third-party rumour of speculation,”
heightened pressure to cut costs. The pressure is ExxonMobil told the news agency. “ExxonMo-
greater for ExxonMobil and its partners, which bil continues to actively work with its partners
are yet to take a final investment decision (FID) and the government to optimise development
at Rovuma LNG. The US major had hoped to plans by improving synergies and exploring
sanction the project this year but has delayed the opportunities related to the current lower-cost
move until 2021. environment.”
Rovuma LNG is expected to host two liq- Total, meanwhile, said the operators of the
uefaction trains capable of producing 15.2mn two projects “continue working together to
tonnes per year (tpy) of LNG in total. Its maximise synergies and optimise future phases
resource base is Area 4, estimated to contain of development.”™

Week 48 04•December•2020 www. NEWSBASE .com P13