Bitumen price in Mozambique
Bitumen price in Mozambique
In this article, we will discuss the oil market and bitumen price in Mozambique. So,
stay with us. According to the economic newspaper “Il Sole”, the signing of a cooperation agreement,
the Italian oil company “Eni” transferred
28.57% of its share of operations in Mozambique worth 4 billion and
200 million dollars to the Chinese oil company “Cnpc”.
Furthermore, Paolo Scaroni, CEO of the Italian Oil Company,
estimated the reserves in Mumbai and Coral reservoirs in Mozambique at 2 trillion and 650 billion cubic meters of methane,
equivalent to 30 years of gas energy consumption in Italy.
It’s also good to mention that last December,
the Italian oil company also signed a cooperation agreement with the American company
Anadarko to build a liquefied natural gas
(LNG) production facility in the northern regions of Mozambique.
Needless to mention that all these above-mentioned items have already
affected the bitumen price in Mozambique significantly.
The liquefied natural gas produced at the facility,
which will be operational in 2018-2019, will be exported to Asian and neighboring countries,
including Tanzania and South Africa,
in addition to supplying Mozambique for domestic consumption. Petrobras Brazil and
Petronas Malaysia are mutually in oil exploration
operations in an oil block located at the mouth of the Zambia River.
In addition, in 2007, Petrobras signed a memorandum of understanding with the
Meanwhile , National Hydrocarbon Resources Organization of Mozambique (INCH) to conduct exploration activities in Mozambique’s
onshore oil and gas fields. moreover, It is noted in this memorandum that Petrobras company can also carry out
research and production activities in the field of biofuels or biodiesel.
Consequently, the Mozambican government became interested in extracting oil from the oil plant Jatropha,
which grows well in the country and using sugarcane to produce ethanol alcohol.
According to Reuters from New Delhi, Mozambican Deputy Minister of Mineral Resources Abdul Razak Nur Mohammad said at the
Petrotech Energy Conference in India that the development rights to the blocks were likely to be offered in the first half of 2013.
“There will be a proposal to develop 12 blocks, at least three of which are in the Rovuma gas-rich area,” said Inosenkia Makulo,
a geologist at the National Petroleum Institute (INP) in Mozambique.It’s worth mentioning that Anadarko, USA,
and Eni Italy have made major gas discoveries in this area.
What other items affected the bitumen price in Mozambique?
Moreover, Mozambique’s gas sector has become attractive to oil companies after consortia led by
Anadarko and Eni discovered about 130 trillion cubic feet of gas in Mozambique.Fortunately,
this volume is enough to supply 13 years of gas needed by Germany, Britain, France and Italy.
To sum up, in recent years oil and gas companies have begun to explore and produce
hydrocarbons on the continent, using deep-water drilling,
despite some difficulties in securing oil and gas reserves in East Africa.
These gas explorations will increase the prospects for economic growth and development in
East Africa and will pave the way for energy investors to enter the region.
