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OPEC bulletin 11/11
33
Petronasalsoholdssignificantoffshoreacreage, although
the company has so far not disclosed its plans.
Eni has described the deepwater Mamba South dis-
covery as the largest in the company’s explorationhistory
and confirming that the Rovuma Basin is a “world-class
natural gas province”.
Drilled to a total depth of 5,000 metres, 40 km off
the Cabo Delgado coast, the exploration well on Area 4
has exceeded pre-drill expectations.
Eni estimates that there could be at least 15 trillion
cu feet of gas in place in the Mamba South Area. A sec-
ond commitment well, Mamba North 1, will be drilled
after tests are finished on the first one.
The potential scale ofMozambique’sburgeoning gas
sector is shown in the investment proposals set out by
various prospectors.
In November, Paulo Scaroni, Chief Executive Officer
of Eni, indicated that the company will spend $50bn on
its massive offshore Mamba gas discovery, developing
it as an LNG export plant to capitalize on soaring Asian
demand.
This level of investment is the equivalent of around
five times Mozambique’s total GDP in 2010 and is many
times greater than the $2.2bn invested in Mozal.
Liquefaction plans
Currently, Eni owns a 70 per cent operating stake in
the gas discovery with the rest shared equally amongst
Portugal’s Galp Energia, South Korea’s state-run Kogas,
which is the world’s largest corporate buyer of LNG,
and state-run Empresa Nacional de Hidrocarbonetos
(ENH).
Eni has said that it couldbuilda twoor three-train LNG
plant on the country’s northern coast with first exports
launchedassoonas2016. Thiswould implyexport capac-
ity of up to 18 million tonnes per annum, the equivalent
of 25bn cu m, based on a 25-year project lifespan.
To put that into context, this is about the same level
as Australia’s total gas exports for 2010 and would cover
around a quarter of Japan’s total consumption, according
to latest data from the International Energy Agency.
Eni’s proposals follow similar plans by Anadarko,
with a similar cost estimate of $2,800/t of LNG export
capacity and on a par with new projects being developed
in Australia, a major target for global investment in gas
liquefaction.
Anadarko had several successful strikes in 2010 and
2011 on its Area 1 offshore permit, east of Eni’s block. It
holds a 36.5 per cent stake in the blockwith the rest held
by Japanese trading house, Mitsui, Indian companies,
Videocon and BPCL subsidiary Bharat Petro Resources
Ltd, and London-based Cove Energy. ENH holds a 15 per
cent interest carried through the exploration phase.
Anardarko also wishes to serve Asian markets and
hassubmitteda$15bnproject proposal that, if approved,
should see the scheme come onstream by 2018, accord-
ing to Mozambican newspaper
Notícias
.
KBR has secured the contract for the pre-front-end-
engineering and design study for the LNG plant with two
trains totaling a 10m t/yr capacity. However, unlike Eni,
Anadarko lacks experience and expertise in the LNG
sector.
Paulo Scaroni, Chief Executive
Officer of Eni, which will invest
$50bn in Mozambique’s Mamba
gas discovery.
Reuters
Cove Energy has mulled selling its interest in
Mozambique so it can concentrate on exploring newly
awarded licenses offshore Kenya.
As Eni’s discovery is close to that of Anadarko, it is
likely that they are the same reservoir and could present
joint development opportunities if the parties decided
to unitize their interests.
This approach would enable Anadarko to learn from
Eni’s LNG experience, while providing Eni with a part-
ner to share the risks and financing of their deepwater
discoveries.
Mozambique already exports gas to a gas-to-liq-
uids plant in South Africa. However, this is via the