By: Christine Petré
In recent years oil and gas discoveries have increased on the African continent including Ghana, Tanzania, Uganda and Mozambique and prospected fields in Kenya, Mali and Sierra Leone. Tanzania and Mozambique have been labelled the “newest lion cubs” as they enter the gas industry market.
“This could be one of the most important natural gas fields discovered in the last 10 years, with significant long-term benefits for Mozambique,” Jim Hackett, Anadarko CEO and chairman announced in a recent statement.
Some of the international companies who have shown an interest in the new gas discoveries in Mozambique are Eni, Exxon Mobil, BP, Malaysia’s Petronas, Shell, Tullow Oil , Vitol and Noble Energy.
However, recent reports indicate that the winner has been Royal Dutch Shell, who after increasing their offer landed on £1.12bn for the Mozambique-focused Cove Energy. Expanding into the East African market with a gas production of “significant potential”.
However, the government of Mozambique still needs to give their consent for the business deal, as the ambition is to keep a greater share of future profits within the country.
Mozambique has had an economic growth rate around seven percent the last years and showed resilience towards economic global slowdown.
However, bearing in mind that the infamous resource curse and Dutch disease, which in many African countries has become synonymous with natural resource discoveries and the World Bank analyst Paul Collier’s predictions that countries relying on revenues from resource exports run a 40 times higher risk of civil war, play it smart Mozambique!