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The Angolan government had originally “ANPG will host clarification sessions for
planned to launch the onshore licensing round companies interested in hydrocarbon explora-
in May of this year. Now, though, it is looking to tion and production as part of the 2020 bidding
push the start date back. According to Petroleum process for the Lower Congo and Kwanza terres-
Geo-Services’ (PGS) website, the Norwegian trial basins,” PGS added. “The agenda includes
seismic services company that is supporting the legal and contractual framework of the
the licensing round, bidding will be “officially blocks under bid, commercial terms, tax incen-
launched in September/October 2020 with the tives, data package details, and the promotion of
deadline to submit bids in March.” local content.” ™

US Eximbank to provide largest portion

of $14.9bn Mozambique LNG credit

MOZAMBIQUE THE US Export-Import Bank (Eximbank) is
set to make the largest individual contribu-
tion to a nearly $15bn credit package that the
Mozambique LNG consortium is using to fund
its project.
The US export credit agency (ECA) said in
a press release last week that it had signed the
initial documents authorising a direct loan of
$4.7bn to Mozambique LNG. This is equivalent
to around 31.54% of the credit package, which
is worth a total of $14.9bn. It is also the largest
single portion of the package, which is being
extended by a group that includes seven other
ECAs and 19 commercial banks.
According to the bank, the loan agreement
will benefit the US economy. Mozambique LNG
intends to use Eximbank’s portion of the credit
package to cover the cost of goods and services
provided by US companies, it stated.
“Once additional documents are finalised
and conditions are satisfied, EXIM’s financing
will support a forecasted 16,700 US jobs at 68
suppliers located in eight states – Florida, Geor-
gia, Louisiana, New York, Oklahoma, Pennsyl-
vania, Tennessee and Texas – and the District
of Columbia,” it added. “Follow-on sales are
expected to support thousands of additional
jobs across the United States.”
Eximbank went on to say Mozambique LNG Mozambique LNG will develop Area 1 (Image: Wentworth Resources)
would be using US goods and services for both
the onshore and offshore portions of the project. trains, each with a capacity of 6.44mn tonnes
It noted that its board of directors had author- per year, and the first train is due to come on
ised the release of funds for onshore work, stream in 2024. The cost of the project has been
which will primarily involve the construction of estimated at $20bn.
a gas liquefaction plant, in September 2019. The Equity in the Mozambique LNG consor-
board then revised its authorisation in May 2020 tium is divided between Total E&P Mozam-
to permit the release of funds for offshore work, bique Area 1, the operator, with 26.5%; two
which will mainly involve the development of Japanese companies, Mitsui and Japan Oil, Gas
the offshore Area 1 block. and Metals National Corp. (JOGMEC), with
Mozambique LNG has already started to 20%; Bharat Petroleum (India), with 15%; Beas
build an onshore gas liquefaction plant on the Rovuma Energy Mozambique (a 60:40 joint
Afungi Peninsula in northern Mozambique. venture between ONGC Videsh Ltd (OVL) and
This onshore facility will process natural gas Oil India Ltd, or OIL), with 10%; Mozambique’s
from Area 1, an offshore block in the Rovuma national oil company (NOC) ENH, with 10%;
Basin. It will eventually have two production and PTTEP (Thailand), with 8.5%. ™

Week 30 29•July•2020 www. NEWSBASE .com P13