Area 1 Project Business Opportunities Showcased
MAPUTO, 23 October 2020 – The Mozambique LNG project, led by Total, held, on 21st and 22nd October, two webinars, the first aimed at sharing business opportunities for 2021 and the second to empower companies on health, safety and environment at work, procurement processes and procedures, due diligence issues and registration of suppliers.
Over 100 Mozambican companies participated in this webinar on Local Opportunities, including representatives of the Ministry of Mineral Resources and Energy (MIREME), the National Petroleum Institute (INP), the Empresa Nacional de Hidrocarbonetos (ENH), representatives of the Local Content Ministerial task force and several Mozambican business associations.
There are opportunities in goods and services supply in health and safety at work, construction, maintenance, food, camp management, transportation (road and sea) and electrical and office equipment, as mentioned by four of the companies contracted by the project, namely CCS JV, the main consortium contracted for engineering, acquisitions and construction of the LNG facility (onshore), TechnipFMC and Van Oord , which form the MTV consortium, contracted for engineering, acquisitions, construction and installation of subaquatic systems (offshore) and Gabriel Couto, contracted for the construction of the Afungi aerodrome.
At the end of the event, the Coordinator of the Multisectoral Local Content Task Force, Eng. Henrique Cossa, praised Total's initiative and stressed the need to continuously inform the national business community about the business opportunities offered by natural gas projects in Mozambique as well as to make the necessary requirements known by the national companies to access such opportunities while empowering these companies in order to increase their competitiveness.
Thomas Rodriguez, Total's Local Content Manager, said: "Our focus, in partnership with the Mozambican Government, is to increase the competitiveness of local companies to maximize opportunities for local participation. These seminars are part of the multiform work we have been doing to achieve this desiderate. In July, we presented business opportunities for a horizon of six months and more, and now we present opportunities for 2021, which allows for greater preparation of the business."
Thomas Rodriguez also said that "the project, as we have been mentioning, will continue to give preference to Mozambican companies, but they should be competitive, fulfilling the requirements of the project in terms of planning, quality, quantity and cost. Therefore, where relevant, we encourage local companies to create the necessary partnerships with each other or with foreign companies to strengthen their competitive capacity to successfully compete with the business opportunities provided by the project. Likewise, we expect foreign companies to commit and comply with the goal of maximizing local content as part of their activities in the country."
It is recalled that under the Golfinho/Atum project, contracts of around US$2.5 billion will be awarded to Mozambican companies or registered in Mozambique during the period of construction of the project's infrastructure. And according to Thomas Rodriguez, the project has already spent more than US$850 million on companies registered in Mozambique, of which more than 200 million have been spent on Mozambican companies.
The Mozambique LNG project is the country's first onshore LNG project. The project includes the development of the Dolphin and Tuna fields, located in Area 1 Offshore of the Rovuma Basin and the construction of a factory with two liquefied units with 13.1 million tons per year capacity. Area 1 contains about 65 Tcf of gas resources, of which 18 Tcf will be developed with the first two liquefied units. The Final Investment Decision of the Mozambique LNG project was announced on the 18th June 2019, and the project is expected to go into production in 2024.
The Concessionaires of Area 1 of the Rovuma Basin are Total E&P Mozambique Area 1, Limited, operator and holder of 26.5% of participatory interest., ENH Rovuma Area 1, S.A. (15%), Mitsui E&P Mozambique Area1 Limited (20%), ONGC Videsh Rovuma Limited (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%).
For more information please contact the Communication Unit via comunicacao@inp.gov. or by phone 21248300.