The administrator of Portuguese oil company Galp, Thore Kristiansen, said this Monday that it might be worth studying the possibility of installing a second gas platform in Mozambique, while on the ceremony in which the first structure of its kind was placed at sea, in South Korea.
“The next phase [of gas exploration] involves making liquefaction pipelines on land, but due to the insecurity situation this was put on hold and we hope that the situation will stabilize,” he said, referring to the armed insurgency in Cabo Delgado, northern Mozambique.
Until then, “one of the things that will be developed is to find out if there are alternative ways of taking advantage of these resources. And then it may be possible to assess whether a second platform like this could be a viable alternative”.
He emphasised that this is still a secondary target, as “at this stage, the focus is to develop reserves with onshore liquefaction pipelines, which is the ideal way to build a business with scale”.
Kristiansen was speaking at the Geoje shipyards where Eni, as leader of the Coral Sul project in Area 4 (a concession that Galp is part of) launched the platform that, starting in 2022, will debut the exploration of reserves in the Rovuma basin, considered one of the largest gas discoveries worldwide.
The administrator of the Portuguese oil company who attended the ceremony considers that Mozambique is a “blessed” country with a resource that the Coral Sul project takes to the “next level”, with production starting in 2022.
“It is an important milestone for Mozambique and for Galp”, as it is Galp’s “first non-oil gas production”, he pointed out.
The use of reserves in the Rovuma basin is also seen as a response to climate change, argues Kristiansen.
Because it has “about half of the emissions of coal, gas can be a source with an important role in the transition to a society with less carbon”.
Following today’s ceremony, the Coral Sul floating platform releases moorings from the Geoje pier on Tuesday to be driven by three tugboats for 60 days across the Indian Ocean to reach the anchorage point off Mozambique.
Technical preparations followed, such as the attachment 50 kilometers off the coast of Cabo Delgado province using 20 moorings attached to the seabed (two thousand metres deep), as well as the connection to the six wells already drilled.
Area 4 is operated by Mozambique Rovuma Venture (MRV), a joint venture co-owned by ExxonMobil, Eni and CNPC (China), which holds a 70% stake in the concession contract.
Galp, KOGAS (South Korea) and Empresa Nacional de Hidrocarbonetos (Mozambique) each hold a 10% stake.