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    FLANDERS INVESTMENT & TRADE MARKET SURVEY
                                                               Market Report 
         
                                                                             
                                                                             
                                                                                 
                                                                             
                                                                             
                                                                             
                                                                             
                                                                             
                                                                             
                                                                             
                                                                             
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                  OIL & GAS INDUSTRY IN 
                            MOZAMBIQUE 
                                   December 2021 
                                                                             
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                                                          www.flandersinvestmentandtrade.com 
                   CONTENTS 
                   1.    Background of Mozambique ........................................................................................................................................... 3 
                   2.    Economic Structure .............................................................................................................................................................. 5 
                         2.1  Employment & Development ................................................................................................................................. 5 
                   3.    Oil & Gas Industry ................................................................................................................................................................. 6 
                   4.    Oil & Gas Infrastructure ...................................................................................................................................................... 7 
                         4.1  Table depicting the infrastructure on oil and gas in Mozambique ................................................. 7 
                   5.    Natural Gas ............................................................................................................................................................................... 8 
                   6.    LNG Projects ............................................................................................................................................................................. 9 
                         6.1  Mozambique Liquified Natural Gas - (LNG) Project .................................................................................. 9 
                         6.2  The Rovuma LNG Project (ExxonMobil, ENI, and CNPC)....................................................................... 10 
                         6.3  The Coral FLNG Project (ENI and ExxonMobil) ............................................................................................ 11 
                   7.    Companies awarded Contracts .................................................................................................................................... 12 
                   8.    Projects and Challenges .................................................................................................................................................... 12 
                   9.    Exploration & Production ............................................................................................................................................... 13 
                         9.1  Wells drilled to date in the Mozambique Basin and the Rovuma Basin ..................................... 13 
                         9.2  Upstream Exploration .............................................................................................................................................. 13 
                         9.3  Downstream Exploration ....................................................................................................................................... 14 
                   10.  Active Concessions contracts ........................................................................................................................................ 15 
                   11.   Oil .................................................................................................................................................................................................. 17 
                         11.1  Refineries and crude oil .......................................................................................................................................... 17 
                   12.  Oil & Gas regulatory framework .................................................................................................................................. 18 
                         12.1  Petroleum Ownership System ............................................................................................................................. 18 
                         12.2 Regulatory Institutions ............................................................................................................................................ 19 
                         12.3 Legal Instruments ....................................................................................................................................................... 19 
                   13.  Mozambique’s National Oil and Gas Company ................................................................................................. 20 
                   14.  International Oil and Gas Companies ..................................................................................................................... 20 
                   15.  Total and the government of Mozambique .......................................................................................................... 21 
                   16.  Oil & Gas SWOT Analysis ................................................................................................................................................. 22 
                   17.  Annual Trade fairs and events on Oil and Gas .................................................................................................. 23 
                   18.  Important Company websites ...................................................................................................................................... 23 
                   19.  Conclusion ............................................................................................................................................................................... 23 
                   20.  References ............................................................................................................................................................................... 24 
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                   pagina 2 van 25                                                                                                           Oil & gas industry in Mozambique 
        1. BACKGROUND OF MOZAMBIQUE 
        Mozambique, with a current population of 32,251,450, remains hopeful that the oil & gas discoveries 
        will change its economic climate, (Worldometer, 2021). Since it was dubbed the poorest country in 
        the world when it won its independence in 1975, the government launched economic reforms to 
        ensure that the economy remains stable, (CIA, 2021). The country's GDP increased from $4 billion 
        in 1993 to around $37 billion in 2017. This was due to foreign backing and political stability (CIA, 
        2021).  
         
        While the impact of the COVID-19 pandemic began in early 2020 and caused severe disruptions in 
        the economy around the world, impediments such as the State of Emergency (SoE) were imposed 
        along supply and demand chains in Mozambique. These factors pushed the country's economic 
        growth even lower, resulting in a 1.3% decrease in 2020. However, the developing liquefied natural 
        gas (LNG) sector in Mozambique is expected to assist the country's economic recovery to pre-2016 
        levels in the coming years, with real GDP growth expected to reach 7.4% by 2024, (PWC, 2021).  
         
        The discovery of huge natural gas deposit off the coast of northern Mozambique on February 18, 
        2010 by Anadarko Mozambique, which was a subsidiary of Anadarko Petroleum became a massive 
        economic venture for the country. Some of the world's major energy businesses flocked to the 
        Cabo Delgado region, where the basin is located. Companies like Total Energies SE of France (who 
        bought Anadarko's project), ExxonMobil of the United States, and ENI of Italy (which worked with 
        the China National Petroleum Corporation for oil and gas exploration and production) were among 
        them, (M&G, 2021). 
         
                           
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        pagina 3 van 25                                 Oil & gas industry in Mozambique