[2020-02-25] Total Group to order tanker ships for natural gas project in Mozambique

Source: Macauhub

French group Total is expected to order eight tanker ships for liquefied natural gas for its project in the Area 1 block of the Rovuma basin, northern Mozambique, reported the Business Korea newspaper.

The letters of intent signed with Hyundai Heavy Industries and Samsung Heavy Industries should lead to orders next March, and the construction of eight vessels has an estimated cost of 3.4 trillion won (US$2.8 billion).

This announcement shows that the project, which may require investments in excess of US$25 billion, is progressing, despite the climate of insecurity in Cabo Delgado province.

Attacks carried out by alleged Islamic terrorists have killed hundreds of people and significant destruction of property since 2017.

In 2019 the Total group concluded the acquisition of the 26.5% stake held by the Anadarko Petroleum Corporation in that block for US$3.9 billion, as part of a process to buy the African assets of the latter group, since acquired by the Occidental Petroleum Corporation.

The initial project included installing two natural gas liquefaction plants with a production capacity of 12.9 million tonnes per year.

The remaining partners of the Total group, which is the block’s operator, are ENH Rovuma Área Um, a subsidiary of Mozambican state oil company ENH, with 15%, Mitsui E&P Mozambique Area1 Ltd. (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%) and PTTEP Mozambique Area 1 Limited (8.5%).