Africa Development FDI Gas Local Content Mozambique Press Release

Total shares business opportunities for 2021 with Mozambican companies

The Total-led Mozambique LNG project held, last week, through electronic platforms, two seminars with more than 100 Mozambican companies, aimed at sharing business opportunities for 2021 and to train companies in matters of health, safety and the environment, procurement processes and procedures, due diligence, and supplier registration. Representatives of the Ministry of Mineral Resources and Energy (MIREME), National Petroleum Institute (INP), National Hydrocarbon Company (ENH), representatives of the Local Content Group and several Mozambican business associations also participated.

Business opportunities were presented by 4 of the project’s contractors, namely CCS JV, the main consortium contracted for engineering, procurement and construction of the LNG facility (onshore), TechnipFMC and Van Oord, which form the MTV consortium contracted for engineering, procurement, construction and installation of submarine systems (offshore) and Gabriel Couto, contracted for the construction of Afungi Airstrip.

The opportunities presented included, among others, the supply of goods and services in the areas of health and safety at work, construction, maintenance, food, management of camps, transport (road and sea) and electrical and office equipment.

Henrique Cossa, Coordinator of the Local Content Multisectoral Group, stressed the importance of this type of seminars, having emphasised the need to make known the requirements for national companies to access the businesses opportunities offered by gas projects, as well as actions aimed at empower and increase the competitiveness of the national companies.

Thomas Rodriguez, Total’s Local Content Manager, said: “Our focus, in partnership with the Mozambican Government, is to increase the competitiveness of local companies to maximize opportunities for local participation. These seminars are part of the multiform work that we have been doing to achieve this goal. In July, we presented business opportunities for a horizon of six months and now we have presented opportunities for 2021, which allows for greater business preparation.”

Also read: AfDB joins landmark US$20B Mozambique LNG financing

Thomas Rodriguez also stated that “the project will continue to give preference to Mozambican companies, but they should be competitive, fulfilling the requirements of the project in terms of planning, quality, quantity and cost. Therefore, whenever relevant, we encourage local companies to create the necessary partnerships with each other or with foreign companies to strengthen their competitive capacity to successfully compete for the business opportunities provided by the project. Likewise, we expect foreign companies to commit and comply with the desire to maximize local content, as part of their activities in the country”.

According to Thomas Rodriguez, the project has already spent more than 850 million US dollars on companies registered in Mozambique, more than 200 million of which have been spent on Mozambican owned companies.

Total E&P Mozambique Area 1 Limitada, a wholly owned subsidiary of Total, operates Mozambique LNG with a 26.5% participating interest alongside ENH Rovuma Área 1, S.A. (15%), Mitsui E&P Mozambique Area1 Limited (20%), ONGC Videsh Rovuma Limited (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%).

About Mozambique LNG project

Mozambique LNG is the country’s first onshore LNG development. The project includes the development of the Golfinho and Atum fields located within Offshore Area 1 and the construction of a two-trains liquefaction plant with a capacity of 13.1 million tonnes per year. The Area 1 contains approximately 65 Tcf of gas resources, of which 18 Tcf will be developed with the first two trains. The Final Investment Decision of Mozambique LNG project was announced on June 18, 2019, and the project is expected to come into production by 2024.

Source: Press Release

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