Comunicação - Imprensa
Societe Generale believes in the stabilisation of Cabo Delgado
Investment bank Societe Generale yesterday expressed its confidence in the stabilising of the security situation in Cabo Delgado, northern Mozambique, where the bank is among those supporting Africa’s largest private enterprise, in the gas sector.
“From what I know of Mozambique, over a long period of time, I am confident that the situation will be stabilised. The authorities and operators [of the project] are doing everything necessary in this respect,” said Katan Hirachand, director of the energy sector at the Societe Generale bank. Katan Hirachand was speaking during the Mozambique Natural Gas Virtual Summit.
The insurgency in northern Mozambique is one of the “top of the agenda” issues for everyone involved in natural gas projects in the country, Hirachand said. “This is one of the top items on the agenda: everyone wants a safe environment for the project,” he said.
The bank advises the largest ongoing project, led by Total in Rovuma Area 1 (production is scheduled to start in 2024), and Hirachand was answering a question about the risk posed by the “terrorist” attacks in the area surrounding the project.
Societe Generale is also one of the banks participating in the US$15 billion (€13.5 billion) financing agreements achieved in July for the construction of the industrial complex and associated infrastructure in Afungi.
Ronan Bescond, director-general of Total in Mozambique, another speaker at event, said that “a safe environment and a robust road network are preconditions for the [Area 1] project to deliver on its promise to catalyse growth and development of the district of Palma and the country”.
On August 24, Total announced a review of the Memorandum of Understanding with the Mozambican Government for the operationalisation of a joint force to protect the project.
In clarifications to Lusa, the French oil major said that “the revision of the safety memorandum reflects the increase in activities during the construction phase and the mobilisation of a greater workforce”.
Mozambique has approved three projects for the exploitation of natural gas off the coast of Cabo Delgado, northern Mozambique.
The two larger projects that will channel gas from the seabed to land, exporting it in liquid form. One is led by Total (Area 1 consortium) and is moving forward to start in 2024; the other is an Exxon Mobil and Eni (Area 4 consortium) project which has not yet been completed.
A third, smaller project also belongs to the Area 4 consortium and consists of a floating platform that will extract and process gas for export directly at sea, with start scheduled for 2022.
The floating platform is expected to produce 3.4 million tons of liquefied natural gas per year (mtpy), while Area 1 output is estimated at about 13.12 mtpy, and the Area 4 land project, 15 mtpy.
Currently, the Area 1 project is the largest private investment underway in Africa, valued at between €20 and €25 billion euros, and the Exxon Mobil and Eni project pending is of a similar size.
Meanwhile, Mozambique faces a humanitarian crisis in Cabo Delgado province, where a three-year armed insurgency has already claimed between 1,000 and 2,000 lives and displaced 435,000 people.
Source: https://clubofmozambique.com/news/societe-generale-believes-in-the-stabilisation-of-cabo-delgado-175673/
