September 2, 2013
Publisher: PESGB Newsletter
Author: Bimbola Kolawole
Date: September 2013
The Republic of Mozambique, a south eastern African country bordered by the Indian Ocean, Tanzania, Malawi, Zambia, Zimbabwe and South Africa, captured the world’s attention following major offshore discoveries in 2010, 2011 and 2012.
As global energy demand continues to rise, it is of interest to know if supply will struggle to meet demand. The significant gas find in offshore East Africa has made the region a prolific one. Back then in the 1960s, after limited exploration activities were carried out by some western oil majors, the scale of the resource wasn’t appreciated, and with a limited local market for gas discovered, the Majors moved on to what they perceived as more promising prospect. 40 years later, Sasol began to develop the onshore Panda and Temane gas field and production came on-stream in 2004 with proven reserves of 3.5 trillion cubic feet and estimated current production of 357mcf/d - a significant change in a matter of decades.
Figure 1: Discovered resources by companies categorized by onshore- offshore activities (Source: UCube from Rystad Energy).
2012 was an interesting year recording high discovery activities of the top 6 offshore projects of Prosperidade, Mamba South, Mamba North, Golfinho, Coral and Atum giving a total of 53.4Bcf. The players that recorded success in these projects include Eni, Anadarko, Empresa Nacional de Hidrocarbonetos E.P (ENH - the State owned oil company) and PetroChina, with ambitions to continue to explore for potential future development.
The production graph in Figure 2 illustrates an 80% increase in production by 2025, which will come from discovered fields such as Golfinho, Atum, Mamba North and Mamba South. Additional growth will come from undiscovered fields. This reflects the need for more capital and developmental investments for new drilling and maintenance on existing fields.
Figure 2: Production by field lifecycle (Source: ECube from Rystad Energy).
Oil and Gas Players:
On-going developmental projects highlight Sasol’s level of gas production activity as well as future production start periods for other companies such as Anadarko, Mitsui Bharat Petroleum Corp (BPCL) as illustrated in the chart below:
Figure 3: Production profile of a selection of companies by hydrocarbon type from 2004 – 2025 (Source: UCube from Rystad Energy).
Currently, the only producing company in Mozambique is being financed by the International Finance Corporation (IFC) and, Empresa Nacional de Hidrocarbonetos E.P (ENH) is having a 5% and 25% equity ownership respectively on the Pande and Temane gas fields. The proposed two train LNG by Sasol, after signing an agreement with the Mozambican state hydrocarbon company ENH to run a 30km pipeline from Matola to Maputo and Marracuene to distribute gas to homes and small businesses. Estimated costs are $40million with initial phase involving 5.5 billion cubic feet of gas a year for a period of 20 years.
As one of the winners of the competitive bid round for the Rovuma onshore and offshore, the Houston based Independent has since drilled 15 wells successfully and exploited 7 more discoveries in Offshore Area 1, which it operates with partners Mitsui E&P Mozambique Area 1 Limited, BPRL Ventures Mozambique B.V, Videocon Mozambique Rovuma 1 Limited and PTT E&P. The exploration activities in Area 1 have resulted in six of the world’s largest discoveries in 2010, 2011 and 2012. Through its local subsidiary, Anadarko Mocambique, Anadarko and partners discovered an estimated 40+ trillion cubic feet (TCF) of recoverable natural gas.
Anadarko is considering a JV to monetize up to 33% of its interest in Mozambique’s prolific offshore Area 1, where it claims reported discoveries may be over 65 trillion cubic feet of gas in reserves. The Golfinho / Atum complex has an estimate of 18+ TCF of recoverable reserves. The Prosperidade complex (Windjammer, Barquentine, Lagosta and Camarao) is among the largest discoveries in Mozambique. These significant reserves drive home the exciting opportunity for Mozambique to become a major exporter of LNG globally.
The Italian giant operates in Area 4 located in the Rovuma Basin’s deep-water with a 50% working interest. With the Mamba South exploration prospect being the largest discovery made in their history as operators, ENI has successfully gone further on more discoveries in Mamba North with Mamba North 1 well drilled in 1,690 meters to a final depth of 5,330 meters. The Mamba North East 1 was drilled to a total of 4,560 meters. Another discovery was made in Area 4 in the Coral 1 exploratory prospect raising the reserve estimate from 75 Tcf to 80Tcf.
Figure 4: Rovuma Coastal Basin’s open acreage discovered resources 2013-2025 (Source: ECube from Rystad Energy).
Contact: Bimbola Kolawole, Business Development Manager Africa, Rystad Energy
Phone: +47 24 00 42 00
Mobile: +47 91 00 83 40
Contact: Julia Weiss, Marketing Manager
Phone: +47 24 00 42 90
Mobile: +47 48 29 87 61
About Rystad Energy
Rystad Energy is an independent oil and gas consulting services and business intelligence data firm offering global databases, strategy consulting and research products.
Rystad Energy is fully owned by the management. It is vital to maintain this independence in operations. We consist of highly qualified and experienced consultants, analysts, technology as well as support people that help enhance and create a complete product and service delivery. Our extensive knowledge on global and local markets is driven by the engagement of our international staff members.
Rystad Energy’s products and services are intended for E&P and oilfield service companies, investors, investment banks and governments. We deliver:
• Global databases – online, complete and integrated field-by-field databases covering the E&P and oilfield service industry
• Consulting services – providing support on strategy, transactions, market assessments, macro trends, etc.
• Research products – multi-client reports and tools on selected regional topics, including NASAnalysis products
Rystad Energy’s headquarters are located in Oslo, Norway, with additional research teams in India. Further presence has been established in the UK (London), USA (New York & Houston), Russia (Moscow), for Africa as well as South East Asia.
About the Author
Bimbola Kolawole is responsible for Rystad Energy’s business development in Africa. Her expertise includes business analysis and development, strategy, risk management as well as project management. Bimbola commenced her career at Vmobile/Celtel (now Airtel Nigeria) and continued later at IHS as an Energy Account Manager covering the geographical areas of Africa, the Middle East and Europe. She holds a degree in Economics from University of Ilorin, Nigeria, an M.Sc. in Energy Finance from CEPMLP-University of Dundee, Scotland and an MBA from University of Leicester, UK.
The oilfield service database DCube is an asset-based, bottom-up database for forecasts on oilfield service revenues. DCube is an unprecedented analysis, forecasting, and decision tool for the global oilfield service market, incorporating all important market drivers.
UCube is an online, complete, and integrated field-by-field database, including reserves, production profiles, financial figures, ownership, and other key parameters for all oil and gas fields, discoveries, and exploration licenses globally. UCube includes 65,000 oil and gas fields and licenses, portfolios of 3,200 companies, and it covers the time span from 1900 to 2100.
The exploration cube ECube is a bottom-up online database providing exploration data on well level globally. It comprises known historic wells, confirmed or planned wells, scouted/estimated wells, and modeled wells in case of information absence. Each exploration well is attributed to a corresponding discovered volume and exploration costs to track performance. Scouted/estimated wells are calibrated through different methods to provide a most likely complete set of exploration wells. Thus, it includes undiscovered wells.