Africa Monitor

Africa Monitor Intelligence

Mozambique: Government Damage Containment on LNG and Vale Exit

The series of problems between the main business projects, considered as structuring for the next decade, especially in the natural gas industry - Area 4 of Cabo Delgado, led by Exxon Mobil and Eni, suspending indefinitely part of the investment in Mamba development zone), mining (Vale) and transport/ logistics (Integrated Logistics Corridor of Nacala (CLIN) - motivated a succession of public announcements, in interview format, by MAX TONELA (MT), Minister of Mineral Resources and Energy.
MT's "move" caught the Area 4 consortium members off guard, as the final decision by Exxon Mobil is not closed and needs to be analyzed by the remaining partners. The process will have to be discussed with the companies that make up the Mozambique Rovuma Venture S.p.A. (MRV) joint venture, owned by ExxonMobil, Eni and CNPC (operators), which controls 70% of the exploration and production concession. Galp, KOGAS and Empresa Nacional de Hidrocarbonetos (ENH, public) hold 10% each.
Vale, which presented itself as very close to the FRELIMO elite that participates in CLIN through Portos do Norte (AM 1291), should now, according to the emerging evidence, become the target of retaliation. Currently, there is a lawsuit in the Administrative Court against the multinational, accusing it of omitting information. Other actions are expected, if Vale does not present, in the short term, buyers that guarantee stability to the project in the face of the interests at stake by the various key figures of the regime (AM 1291). READ MORE