Mozambique and Anadarko Ink $ 23 billion Investment deal

By Arnaldo Cuamba

Minister Max Tonela and CEO of Anadarko Al Walker signing the deal with President Filipe Nyusi watching

Mozambique and the US company Anadarko signed on Tuesday the Final Investment Decision (DFI) to start the implementation of the project of the gas exploration in Rovuma Basin, Cabo Delgado province, in an investment of US $ 23 b.

The signing was done by Mozambican minister of mineral and energy resources Ernesto Max Tonela and Anadarko CEO, Al Walker, representing the consortium formed by Japan’s Mitsui, Thai PTT Exploration & Production, Indian ONGC, Barhat Petro Resources and Oil India and moxambican state company ENH.

It will be the largest private investment ever in Africa and Mozambique that will make the southern african country the largest producer and exporter of Liquefied Natural Gas (LNG) on the continent.

“Today we take a real step forward for the progress of all Mozambicans and future generations,” President Filipe Nyusi said, after witnessing the signing. “What used to be perspectives, today and now have become certainties,” he added speaking at an event with more than 600 participants including the King of Eswatini, the President of Zimbabwe and the Prime Minister of Lesotho.

In turn, Walker said that his company is committed to generating benefits for the Mozambican populations and that gas exploration will create business opportunities at grassroots level.

“We are happy to announce the final investment decision, which confirms our plan. This is a unique opportunity for the Mozambican people” he said, noting that this is the culmination of a journey begun in 2015.

The GNL Golfinho Atum project foresees a total investment of US $ 23.6 billion to be financed in US $ 14 billion by bank funds and the remaining amount by shareholders of the concession.

The development plan provides for two liquefaction lines, installed on land, with an annual production capacity of 12 million tonnes per year of liquid natural gas. The project includes the development of a domestic gas supply line.

GNL Golfinho Atum currently employs more than 2,000 compatriots, of whom 800 are from Palma, the district where the project will be implemented. It is estimated that in total the LNG Golfinho Atum project will create more than 5,000 direct jobs and 45,000 indirect jobs.