Newsletter-Ener & Industria Extractiva Mocambique-edicao Nr 11-Versao Inglesa

9
Enthusiasm, because the ex- ploration of natural gas represent great hope for the development of the country; it is one of the most meaningful natural gas reserve in the continent, which combined with the undergoing exploration of coal and other reserves which are still in research, places the country in a worldwide strategic position regarding energy and extractive capacity – this all comes with high potential for economic growth! Apprehension, because the find- ings have stormed and agitated diverse groups, both national and international, in all sectors, from investors to environmentalists, the mafia and even pirates. It also brings sensitivity and high expecta- tions to the Mozambicans, reviving hopes and dreams of a possible prosper and “easy” future. When we add experience and observation to the mix, we create room for very important reflec- tions: The current situation of Mo- zambique is not unseen at a global scale. Other nations have lived such periods with varying degrees of success at the outcome! Cur- rently, all the upside expectations of growth and prosperity clash with Exploration of gas in deep waters: Exploration of gas in deep waters: The Mozambican case The Mozambican case the coun- try’s reali- ties, char- acterized by general poverty (both rural and urban areas). We should not allow any chance for the enormous opportuni- ties lying ahead be- coming a curse to all involved. Mozam- bique should not replicate Sierra Leon, Nigeria, Liberia and some of An- gola’s negative outcomes. Then there are the inherent in- dustry risks. These risks are even bigger when we are dealing with the exploration of natural gas in deep waters through the offshore process (referring to the explora- tion of oil and gas in the sea). That is the exact case of the Rovuma basin in Mozambique. What is the peculiarity of the gas exploration in deep waters? Historically, the exploration in deep waters has focus primarily on the exploration of oil. But in recent years, the gas exploration in deep waters has gained a greater focus and importance. This fact has been stimulated by the a greater global demand projected for the gas due to the raising consciousness of gas as a clean and greener energy source, as well as for being an en- ergetic promise for the future. The advances in the offshore Obama rules out Rio+20 Obama rules out Rio+20 Pag. 4 Pag. 4 Why Iran Believe they are Why Iran Believe they are Safe from effects Safe from effects of oil sanctions Pag. 6 Cont. pag. 2 The announcement by the North American multinational Anadarko Petroleum (a company with 52 000 million dol- lars estimated capital) of findings of enormous reserves of natural gas in the Rovuma basin, northern Mozambique, has been received with great enthusiasm by many and with rela- tive concern by some. Here’s why: Nr. 11 Newsletter QUARTERLY April, 24 nd 2 0 1 2 - YEAR II Bilingue (ENGLISH VERSION) Pub. PUB. PETRÓLEOS DE MOÇAMBIQUE Dear Readers! A t the early stages of the XXI century, communication emerges as the 4th power in the life of societies and we feel participating in this important evolution. The new Information and Communication Technologies are today a fundamental tool for services and product management specially for big brands. In this 11th of the Newsletter, we talk about the discoveries of natural gas in the offshore Mozambique Rovuma Basin in an article that illustrates the adventures of natural gas exploration in deep waters. Then, we touch on the success of China in the global energy scene, oil industry in particular, with the impressive Petrochina, a young Chinese company, with little more than 13 years in the market, but which already exceeded the giant U.S. Exxon Mobil to become the world’s largest producer of oil. We also revisit HCB dossier, talking on the management reversal to Mozambican State, which is the materialization of the dream of the President Armando Guebuza, when years ago he said loudly: “Cahora Bassa is ours.” The Media Project “Energy and Extractive Industry Mozambique” is an initiative of the Mozambican company, STATUS Consultores de Comunicação Lda, which aims at innovative the way to share ideas and knowledge in the Energy Sector, as well as provide consultancy services and advice on strategic communication. We foster the principles of the right for information in full respect with responsible citizenship and aim to contribute to the economic and social development of Mozambique in a sustainable manner. To this end, we encourage our dear readers and potential partners to disclose this initiative to other stakeholders so that we can add to our audience of over 5 million readers nationally and internationally. Happy reading! Pag. 6 Pag. 6 and more... and more...

Transcript of Newsletter-Ener & Industria Extractiva Mocambique-edicao Nr 11-Versao Inglesa

Page 1: Newsletter-Ener & Industria Extractiva Mocambique-edicao Nr 11-Versao Inglesa

Enthusiasm, because the ex-ploration of natural gas represent great hope for the development of the country; it is one of the most meaningful natural gas reserve in the continent, which combined with the undergoing exploration of coal and other reserves which are still in research, places the country in a worldwide strategic position regarding energy and extractive capacity – this all comes with high potential for economic growth!

Apprehension, because the fi nd-ings have stormed and agitated diverse groups, both national and international, in all sectors, from investors to environmentalists, the mafi a and even pirates. It also brings sensitivity and high expecta-tions to the Mozambicans, reviving hopes and dreams of a possible prosper and “easy” future.

When we add experience and observation to the mix, we create room for very important refl ec-tions: The current situation of Mo-zambique is not unseen at a global scale. Other nations have lived such periods with varying degrees of success at the outcome! Cur-rently, all the upside expectations of growth and prosperity clash with

Exploration of gas in deep waters: Exploration of gas in deep waters: The Mozambican caseThe Mozambican case

the coun-try’s reali-ties, char-acterized by general p o v e r t y (both rural and urban areas). We should not allow any c h a n c e for the enormous opportuni-ties lying ahead be-coming a curse to all involved. M o z a m -b i q u e should not replicate Sierra Leon, Nigeria, Liberia and some of An-gola’s negative outcomes.

Then there are the inherent in-dustry risks. These risks are even bigger when we are dealing with the exploration of natural gas in deep waters through the offshore process (referring to the explora-tion of oil and gas in the sea). That is the exact case of the Rovuma

basin in Mozambique.

What is the peculiarity of the gas exploration in deep waters?

Historically, the exploration in deep waters has focus primarily on the exploration of oil. But in recent

years, the gas exploration in deep waters has gained a greater focus and importance. This fact has been stimulated by the a greater global demand projected for the gas due to the raising consciousness of gas as a clean and greener energy source, as well as for being an en-ergetic promise for the future.

The advances in the offshore

Obama rules out Rio+20Obama rules out Rio+20Pag. 4Pag. 4

Why Iran Believe they are Why Iran Believe they are Safe from effects Safe from effects

of oil sanctionsPag. 6

Cont. pag. 2

The announcement by the North American multinational Anadarko Petroleum (a company with 52 000 million dol-lars estimated capital) of fi ndings of enormous reserves of natural gas in the Rovuma basin, northern Mozambique, has been received with great enthusiasm by many and with rela-tive concern by some. Here’s why:

Nr. 11Newsletter

QUARTERLY

April, 24nd 2 0 1 2 - YEAR II

Bilingue (ENGLISH VERSION)

Pub.

PUB.

PETRÓLEOS DE MOÇAMBIQUE

Dear Readers!

At the early stages of the XXI century, communication

emerges as the 4th power in the life of societies and we feel participating in this important evolution. The new Information and Communication Technologies are today a fundamental tool for services and product management specially for big brands.

In this 11th of the Newsletter, we talk about the discoveries of natural gas in the offshore Mozambique Rovuma Basin in an article that illustrates the adventures of natural gas exploration in deep waters.

Then, we touch on the success of China in the global energy scene, oil industry in particular, with the impressive Petrochina, a young Chinese company, with little more than 13 years in the market, but which already exceeded the giant U.S. Exxon Mobil to become the world’s largest producer of oil.

We also revisit HCB dossier, talking on the management reversal to Mozambican State, which is the materialization of the dream of the President Armando Guebuza, when years ago he said loudly: “Cahora Bassa is ours.”

The Media Project “Energy and Extractive Industry Mozambique” is an initiative of the Mozambican company, STATUS Consultores de Comunicação Lda, which aims at innovative the way to share ideas and knowledge in the Energy Sector, as well as provide consultancy services and advice on strategic communication. We foster the principles of the right for information in full respect with responsible citizenship and aim to contribute to the economic and social development of Mozambique in a sustainable manner. To this end, we encourage our dear readers and potential partners to disclose this initiative to other stakeholders so that we can add to our audience of over 5 million readers nationally and internationally.

Happy reading!

Pag. 6Pag. 6and more...and more...

Page 2: Newsletter-Ener & Industria Extractiva Mocambique-edicao Nr 11-Versao Inglesa

also gain traction, intensifi ed through a scien-tifi c studies and historical measurement data-bases showing that the emission of hydrocar-bons generate greenhouse gas effect resulting in potentially serious impact on the world cli-mate patterns. This is driving a change on the

consumption base (to prefer renewable sourc-es) and the use of natural gas has a “cleaner” source which contributes to lessen greenhouse emissions.

The main focus is moving from the traditional survey areas such as the Gulf of Mexico and the northern sea, towards the deep waters ar-eas of occidental Africa, South America, the Barents sea and recently the Rovuma river ba-sin in Mozambique.

Still the exploration of gas in deep waters presents great technical and commercial chal-lenges. Frequently the identifi ed reserves sites are still economically unfeasible or requiring too much expenses and capital investments for production operations. Despite the constant re-search and development in the production tech-nologies, such as the multi-phase techniques, there are still some obstacles.

Mozambique: Anadarko completes Mozambique: Anadarko completes planned appraisal drilling program planned appraisal drilling program in Rovuma Basin offshore areasin Rovuma Basin offshore areas

Anadarko has announced that, with the success of its Barquentine-4 appraisal well, the partnership has completed the drilling portion of its planned appraisal program in the dis-covery area offshore Mozam-bique. The Barquentine-4 well, located in Offshore Area 1 of the Rovuma Basin, encoun-tered approx. 525 net feet (160 meters) of natural gas pay, and became the Anadarko partner-ship’s ninth successful well in the complex.

Additionally, the company announced that sixth- and seventh-grade students of Es-cola Unidade and Escola Pri-maria 16 de Junho in Palma

2 News

production technologies (multi-phase subma-rine systems) have allowed the development of production sites localized at about 100km off shore, in deep water seabed (more than 1000m deep). The trend is surely of a continued in-crease in liquefi ed natural gas (LNG) produc-tion, in response to the increase global energy demands, covering both domestic to industrial needs.

The high prices of oil and gas has pushed the producing companies to search for gas in deep waters in sometimes harsh environmental conditions, executing projects that would not be viable 10 years ago.

The environmental protection advocacy has

e-MAIL: [email protected] / [email protected]

Website: www.energiamocambique.co.mz Newsletter nr.11 - April, 24nd 2012

NATURAL GAS

Village, Mozambique re-cently selected ‘Prosperi-dade’ (Prosperity) as the name for the discovery area in the Offshore Area 1 block. Prosperidade in-cludes the Windjammer, Barquentine, Lagosta and Camarao sites as well as the fi ve subse-quent appraisal wells in the block. As previously announce, Prosperidade is estimated to hold re-coverable resources of 17 to 30-plus trillion cubic feet of natural gas.

‘Our appraisal drilling program in the

Prosperidade complex offshore Mozam-bique delivered outstanding results that provide signifi cant confi dence in the vast extent of this accumulation and will be key in achieving third-party reserve certi-fi cation, as we advance the partnership’s world-class LNG (liquefi ed natural gas) project toward FID (fi nal investment deci-sion),’ Anadarko Sr. Vice President, World-wide Exploration, Bob Daniels said.

“The selection of Prosperidade as the fi eld name is certainly appropriate, as it symbolizes the partnership’s expectations for this area and the opportunities it repre-sents for the people of Mozambique. Our next step is to mobilize the drillship to the northern section of our block to begin test-ing additional high-potential exploration prospects that may expand the resource even further and provide tieback oppor-tunities for future LNG hub facilities.” He added.

The Barquentine-4 well is the north-ernmost well in the Prosperidade com-plex, approx. 19 miles (30 kms) north of the Lagosta discovery well located on the southern end. It is located in water depths of approx. 5,400 feet (1,650 meters).

PUB.

A d k h d th t ith

VVcdna

cBawqtaic

f

Page 3: Newsletter-Ener & Industria Extractiva Mocambique-edicao Nr 11-Versao Inglesa

The ambassador referred that options include the export of zinc and copper, among others, in exchange of receiving machines and others equipment from Chi-na, which would contribute to the Angolan development program.

In Macau, participating to a preparato-ry meeting from the activities of the Macau forum for 2012, the diplomat underlined the historical importance of the relations between Angola and the China.

Joao Garcia Bires congratulated the creation by China of a fund estimated in one million dollars aimed at deepen the relations between China and Portuguese speaking countries, but he also stated that this is another enabler but not the base for the relations with Angola.

The ambassador reminded that Ango-la’s reconstruction plans require coopera-tion and partnerships with China as well as other Nations, and that Luanda’s soon to come program aimed at Agricultural De-velopment will expand those needs as it will tackle agro-industrial labour and min-eral exploration. (Source: Macauhub)

Angola intends to diversify exports Angola intends to diversify exports to china by including mineralsto china by including minerals

PetroChina surpasses Exxon PetroChina surpasses Exxon and becomes the biggest oil and becomes the biggest oil producer in the worldproducer in the world

News 3e-MAIL: [email protected] / [email protected]

Website: www.energiamocambique.co.mz Newsletter nr.11 - April, 24nd 2012

MARKETS

The An-golan gov-ernment is a n a l y s i n g with China, the scenari-os of export of Angolan m i n e r a l s p r o d u c -tion output, which might i n c r e a s e and diver-sify the commercial exchanges between the two nations, affi rmed in Macau, the A n g o l a n ambassa -dor in china, Joao Garcia Bires.

OIL

A fundamental change is occurring in the competition landscape amongst the top oil Companies operating in the market. A giant American company is behind a debu-tant Chinese company. Exxon Mobil is not the biggest producer negotiated in the world stock markets any more. For the fi rst time, the winning title goes to a 13 years old Chi-nese oil company named PetroChina, that was created by the Chinese government to guarantee more oil for the country’s growing economy. On 29th of March, PetroChina an-nounced that it had produced 2,4 million of barrels of oil per day, last year, surpassing Exxon by 100 barrels.

The Chinese company grew fast in the

early few years, by being able to “squeeze” the oldest oil fi elds in China and allowing itself to executing less scrutinized invest-ments than the occidental companies on acquisition of oil reserves in places such as Canada, Iraq and Qatar, motivated by the need to guarantee the biggest quantity of oil possible.

The production of the Chinese company has increased 3,3% in 2011, while Exxon has decreased 5%. The Exxon production fell even behind the Rosneft from Russia. The rising of PetroChina distinguishes the fundamental difference about how the big-gest companies of oil plan to provide oil to the world, once the new deposits have be-

come rare and more expensive to produce.The biggest oil companies are looking

for new fi elds to replace the actual wells. PetroChina has a different mission. The Chi-nese government control 86% of its shares and China uses almost all oil the company produces. The Chinese appetite for fuel and other petro fuels is estimated to double be-tween 2010 and 2035. “We should move for-ward”, commented the president of the Chi-nese company, Jiang Jiemin, source: Valor, Associated press.

Page 4: Newsletter-Ener & Industria Extractiva Mocambique-edicao Nr 11-Versao Inglesa

Obama rules out Rio +20Obama rules out Rio +20

In order to defuse critics about the poten-tial “drift” of the agenda, away from environ-ment and sustainable development, Correa

4

Brief

do Lago has promised that the number of attendees would show the importance of the event which will count with the presence of representatives from 193 countries.

Meanwhile, during a conversation with the Brazilian president Dilma Roussef, at the white house, the north-american president Barack Obama has basically ruled out his participation in the event. He claims that his presidential campaign obligations, which will start peaking in June, will not allow him to be absent at that period.

On the fi nal declaration of the offi cial visit to the United States, the Brazilian diplomacy said that both Obama and Dilma “agreed on the importance of the full U.S. participation in the high level segment of the conference” from 20th to the 22 of June, in an indication that U.S. will send a high level delegation and therefore help strengthen the Rio +20 event importance. Source: NN

Zimbabwe determines mining Zimbabwe determines mining revenues must stay in the countryrevenues must stay in the country

The Zimbabwean government has de-termined that foreign mining companies export revenues must be deposited in local banks, state media reported, in what was seen as the latest government measure to put pressure on foreign companies, as the country tries to solve the leakage of dollars which affects the economy.

The Mining Minister, Obert Mpofu, told the Sunday Mail that the cabinet decided to tell the mining companies to bring back their gains arising from transactions in Zimbabwe, which are deposited in foreign accounts.

“We have been liberal. It makes no sense that mining companies operate in the country and keep the money in offshore ac-counts,” said Mpofu.

“An order was issued and they should bring all the money back to the country because the economy is dollarized now”, added.

The unity government of Zimbabwe has managed to stabilize the economy, which

Pedro Passos Coelho, the Portuguese prime-minister and Armando Emilio Gue-buza the head of state of Mozambique, signed in Maputo a document that offi cial-ises the sale of the 7,5% of the hydroelec-tric company Cahora Bassa.

At the same time, the two countries have agreed the transference to Mozam-bique of the still remaining 7,5% held by Portugal, within 2 years maximum, which generated more business opportunities for the Portuguese companies. (Source: Jornal de Negócios)

ALTERNATIVE ENERGY

At least one hundred head of states and governments have confi rmed their presence at the Rio +20 conference; this is the number of presidents and prime-ministers who have requested a slot in the conference that will be occurring in June, in Rio de Janeiro (Brazil), according to Andre Cor-rea do Lago, head-negotiator of the event.

e-MAIL: [email protected] / [email protected]

Website: www.energiamocambique.co.mz Newsletter nr.11 - April, 24nd 2012

Sale of 7,5% of HCB: An open door for Por-tuguese companies in Mozambique

The exact names of the participants have not been revealed

grew 9.3 percent in 2011 and should grow 9.4 percent this year, according to offi cial fi gures. But the country is fi ghting against an acute shortage of dollars.

Zimbabwe adopted the use of foreign currencies, primarily the U.S. dollar and South African rand in 2009, after its own currency was destroyed by hyperinfl ation, which reached 500 billion percent in De-cember 2008.

The foreign mining companies operating in the country have been pressured by the government to transfer most of their shares to local enterprises.

Last week, Impala Platinum, the second largest producer of platinum in the world, bowed to pressure and said it would trans-fer 51 percent of its shares in its unit Zim-plats to local investors.

The world’s largest producers of plati-num, Anglo American Platinum and Rio Tinto which manage diamond mines, are some of the multinationals operating in Zim-babwe. Source: Nelson Banya

MINING

News

Page 5: Newsletter-Ener & Industria Extractiva Mocambique-edicao Nr 11-Versao Inglesa

increasing their interest in renewable energy, including solar en-ergy, as potentials sectors for the economic development of their country. However, it is known that the high levels of these tech-nologies require “economic trade-offs” that have to be carefully considered.

“The energy prices will always be volatile, which represents a challenge for a long term economic planning”, affi rmed Ken-neth Rogoff, Economy professor in the Harvard University. “The interesting question is to fi nd a formula to turn this instability less prejudicial for the economy”, mentioned (OJE).

Mozambique: African Energy Mozambique: African Energy Resources sent successfully coal Resources sent successfully coal from Botswana to Matola terminalfrom Botswana to Matola terminal

5

The energy sector will play a key role in the global economic growth, with its indirect contributions surpassing the already sig-nifi cant direct effects, according to a report carried by the World Economic Forum, presented in CERAWeek energy conference, which took place in Houston, in the U.S. State of Texas.

The report entitled “energy for the economic growth”, offers a framework of comprehension on the economic role of the en-ergy industry, in a period when unemployment and investments

are still complicated issues in a disturbed global economy. As an example, in the US, the gas and oil industry contributed for the injection of 37 thousand direct job posts in 2011, that generated the creation, during the same period, of 111 thousand indirect jobs. These almost 150 thousand job posts represent 9% of the total job posts created in 2011 in the U.S.

According to Daniel Yergin, the president of CERA, “the en-ergy industry is the only one that respects its economic impor-tance and has a potential to become a signifi cant catalyser for the creation of jobs and sustainable growth without harming the general performance of the sector.”

The Energy Industry is by nature, capital intensive, requiring for that high levels of investments. Simultaneously, it has equally the capacity of managing signifi cant contributions for the gross domestic product (GDP).

“We always suspected that the energy would play a crucial role in the economic recovery”, claims Roberto Bocca, respon-sible for the area of energetic industries of the World Economy Forum. “Meanwhile, we must confess that we were however sur-prise with the results on the report issued, which quantifi es and reveals the true magnitude of the multiplying effects” added.

In addition, the report examines the role of the prices of en-ergy in the economy. Naturally the lower prices reduce the in-put costs of the majority of goods and services, which turn them more accessible. The short term models show for example that lower prices of natural gas will help the north American economy through various ways: 1.1% of increase in the GDP in 2013, one million additional jobs in 2014 and 3% increase in terms of indus-trial production in 2017.

Many countries such as China, India and South Korea are

counolcon

a cnetinte

Energy sector will be the lead-Energy sector will be the lead-er in the economic recoveryer in the economic recovery

WORLD

e-MAIL: [email protected] / [email protected]

Website: www.energiamocambique.co.mz Newsletter nr.11 - April, 24nd 2012

Address: Av. 25 de Setembro, n° 1123

Prédio Cardoso

Telephone.: +258 21 32 71 16/ 17

Fax: +258 21 32 71 17

Director: Inguila Sevene

Editor: Aunorio Simbine

Maquetizador: Luís Filipe Tembe

Email: [email protected]: www.status.co.mz e www.

energiamocambique.co.mz

Concepção Maquetização e Produção

STATUS-Consultores de Comunicação, Lda.

DISP. REG. N 5 GABINFO/DEC/2008

The australian mining company African Energy Resources have sucessfully sent by rail a wagon with 25 tons of coal extracted in the Sese mine, in Botswana, to the coal terminal of Matola, in Mozam-bique, operated by South African group Grindrod, said the company listed on the Australian Stock Exchange.

The test wagon was loaded with 25 tons of thermal coal in the Francistown station of Botswana Rail-ways on the 3rd of April and sent via Bulawayo in south-ern Zimbabwe to Ma-puto, where it arrived on 7th April.

In the statement, the African Energy Resources said that the success of this test showed that it is possible to trans-port coal to the east coast of Africa in or-der to be exported to markets in Asia / Pacifi c, mainly India and China. (source: Macahub)

News

Helpful HintsHelpful HintsFollow the Energy

MozambiqueDear reader! Now you can share and read all the news of Energy Mozambique Magazine in real

time on Facebook.

In addition, the Energy Mozam-bique is also on Twitter. If you prefer, you can also choose to send your Newsletter request through [email protected] or [email protected]

You will be able to receive all editions of the Energy and

Extractive Industry Newsletter directly in your inbox.

Page 6: Newsletter-Ener & Industria Extractiva Mocambique-edicao Nr 11-Versao Inglesa

e-MAIL: [email protected] / [email protected]

Website: www.energiamocambique.co.mz Newsletter nr.11 - April, 24nd 2012

Why Iran Believe they are Safe from effects are Safe from effects of oil sanctionsof oil sanctions

e-M

Website: www.energ

B li thB li thB li th

THE DEFINITION OF NATURAL GAS

Natural gas is composed of a mixture of hydrocarbons (methane, propane, ethane, butane and others gases in lesser proportion) found on the subsoil. The composi-tion of natural gas can change depending of the fi eld factors where the gas is produced (onshore, offshore). Natural gas is a fossil fuel therefore and non- renew-able energy.

Forms of exploration

• Onshore exploration It’s the type of bore/drill that occurs inland. The

equipment utilized contains drills that rotate to tear the rock, bringing to the surface the extracted material obtained in the subsoil. When successful, these channels hit pockets of natural gas that then fl ows to the surface and are captured in the produc-tion facility for transformation and transport/dis-tribution. For example the gas exploration named Panda by SASOL.

• Offshore exploration This type of exploration consists on the production

and exploration of gas and oil in maritime seabed. For example the investigations held by Anakardo in the Rovuma Basin.

PROVED RESERVES

Proved reserves are reserves that, based in the geo-graphic and engineering surveys, can be commer-cially viable, with a high level of certitude – the clas-sifi cation includes factoring the applicable economic conditions, the operational methods available for the site(s) and the local law and regulations.

After initial outrage, bluster and bravado, Iran appears to have come to terms with impend-

ing Western sanctions on the country’s oil and fi nan-cial sector; to the point of saying they don’t think it will have any meaningful impact at all. Iran deems Western politicians as lacking the courage to stick with the ban in the face of a further rally in oil prices; which will be inevitable, as they see it, if the West goes ahead with the ban.

So are they right to be so sanguine? Will Iran’s Asian customers take up the slack in buying produc-tion that the country cannot sell elsewhere? Indeed, is a price rally an inevitable and ultimately crushing certainty if Iran’s oil is cut off from world markets?

We think not. A dramatic rise in prices is likely only in the event of outright aggression, either from Israel striking Iranian nuclear enrichment plants and eliciting Iranian retaliation, or Iranian aggressive ac-tion in the straits of Hormuz (passageway to a size-able chunk of global seaborne oil shipments).

One benefi t of the six-month delay the West put on the ban has been giving the world time to adjust to a market with constrained Iranian supply.

Reuters reporter Clyde Russell calculated that China’s oil inventories may be growing by 670,000 barrels per day. Similarly, OPEC’s own monthly oil market report suggested Chinese stock building may be as high as 800,000 bpd, explaining why Chinese oil imports have been soaring while the economy has been slowing and all pointers are suggesting oil im-ports should slow, if not fall.

A signifi cant part of the largest trade defi cit China has ever seen in January was due to a rising oil im-port bill; if China is indeed importing as much as 800,000 bpd for stock, one can understand Iran may be reading that as robust demand. Source: by Stuart Burns; OilPrice

THE DEFINITION OF NATURAL GAS

FALTA

C U R I O S I T i e sC U R I O S I T i e s

Page 7: Newsletter-Ener & Industria Extractiva Mocambique-edicao Nr 11-Versao Inglesa

The mozambican company STATUS Consultores de Comunicação Ltd, under its Media Proj-ect Energy and Extractive Industry Mozambique has been awarded with the International Quality Summit Award in the category of gold, an event taking place on 27th and 28th of May this year in New York, organized by Business Initiative Directions (BID), a private orga-nization that awards the prestigious World companies that distinguish themselves in provid-ing services and products using new technologies of communications and information.

It must be noted that the International Quality Summit award (IQS) is off ered in recogni-tion of companies and organizations in diff erent countries around the world promoting their reputation and position by implementing and promoting quality culture.

The award recognizes and encourages our company and our project for the quality of services and satisfaction of our clients, readers, partners and organizations.

Media Project Energy & Extractive Industries Mozambique awarded in New York

7Pub.Pub.e-MAIL: [email protected] / [email protected]

Website: www.energiamocambique.co.mz Newsletter nr.11 - April, 24nd 2012

Follow us on our website, twitter, facebook,

newsletter, magazine and television

E-mail: [email protected]

Follow us on our website, twitter, facebook,

newsletter, magazine and television

E-mail: [email protected]

Page 8: Newsletter-Ener & Industria Extractiva Mocambique-edicao Nr 11-Versao Inglesa

Analysis

Political risk: For a better understanding of the political risks associated with explora-tion in the deep waters of the Rovuma basin, two passages of the recent report published by the London based organization, the Econ-omist Intelligent Unit (EIU) seem suffi ciently clear:

“The development of gas and other re-sources of hydrocarbons including oil, will have great implica-tions for Mozambique, producing new sub-stantial sources of rev-enue for the govern-ment and reducing the importance of external help and as a conse-quence, the capac-ity of external interest groups for pressuring the government. (Ex-tracts of the EIU report on Mozambique).

The scenario de-scribed above is ex-tremely bothering. Not due to lack of patriotic sense or a desire of greater autonomy and political indepen-dence from the government towards the for-eign countries. The point is that civil society in the country is still weak. Its advancement and progress remains a major challenge, depending heavily in the donor’s commu-nity long term commitment. This commu-nity, which includes the Programmatic Aid Partners, is the most active in pressing the Mozambican government for continued in-vestment in fi ghting corruption, foster good governance practices and transparency in the conduct of State affairs.

Even on this context of pressure, these efforts have yet to produce full results, as evidenced by the prevailing secrecy and non-disclosure of the details related to the mega-projects and still pending ratifi cation of Mozambique’s adherence to the Initiative for Transparency in the Extraction Industry

The deep waters of the Rovuma basin along the Mozambican coast area 1, are proving to be a bonanza for the north-American oil com-pany, Anakardo petroleum. The area has gained a considerable atten-tion on the oil and gas industry and others sectors, when the multi-national announced the discovery of the Tubarão site last February. Meanwhile, in the midst of the consequent fuzz, some risks emerge that deserve attention, namely political, economic, environmental, so-cial, fi scal and environmental.

(ITET). Some advocate that the Government improved autonomy and self-reliance may weaken the pressure group’s effectiveness. How resilient the Government practices will be in this context? Will the elementary de-mocracy be sustained? Are there any risks of setbacks such as in the case of Angola?Economic and Fiscal Risk: The same article from Economist Intelligent Unit al-

lows us to look at the economic and fi scal risks and their interdependency. The issue is the potential for Mozambique’s economy to become too much dependent on “gas and coal” and polarize as in the case of Zambia with revenues from copper, Rus-sia on gas and oil, Saudi Arabia on oil, An-gola on oil and diamantes, to name a few.

In these countries more than 80% of Gross Domestic Product (GDP) comes from the mining industry.

A great dependence of the state taxes revenues solely on gas and coal, may ad-versely affect the country’s development and the economy diversifi cation. The various cri-ses experienced in the world have shown us that relying excessively on tax revenue from oil is harmful to economic and social devel-opment.

The future of the Tax Authority may be

e-MAIL: [email protected] / [email protected]

Website: www.energiamocambique.co.mz Newsletter nr.11 - April, 24nd 2012

even endangered, as rules may less-en the tax burdens - from individual tax to other smaller tax incidences - hoping in return, reduced scrutiny and pressures from civil society. This would further create dependency on gas and coal, and be an explosive combination, as the main tax con-tributors would surely gain unlimited power base and infl uence, swinging back the future of the countries free strategic choices.

Social and environmental risk: Society may suffer from the above risks, but it is also within a strong and healthy society that the same risks are mitigated! A robust and integrated society, participa-tory and inclusive, where woman are given voice and where representa-tive groups of vulnerable segments are treated with dignity and advance out from basic poverty, is surely much better equipped to help avoid these risks and transform them into positive outcomes. Citing the distin-guished Renaissance philosopher Niccolo Machiavelli “the best for-tress is the people themselves, their love and loyalty towards the State”.

The reverse is the social instabil-ity, poverty, social injustice, corrup-tion, weak institutions, insecurity and other social issues. Hence, the chal-lenge now is to promote the social integration of vulnerable groups, the marginalized, especially those who represent a huge potential for con-fl ict as the former combatants (with-out discrimination), promote the em-powerment and capacity building of communities, especially women and strengthening the private sector, es-pecially small businesses initiatives. This may prevent acts of sabotage and other characteristic manifesta-tions, popular uprisings, internal armed confl icts, political fragmenta-tion, thus creating a climate of own-ership and acceptance of the mega-projects by Mozambican People instead of the sharp hostility as we have been witnessing recently.

The Environmental Risks are in-herent to the production operations in deep waters. There are risks such as leaks, spill or fi re in the gas plat-forms and gas transport because of its highly fl ammable nature.

The resulting risks from the exploration of gas The resulting risks from the exploration of gas in deep waters of the Rovuma basinin deep waters of the Rovuma basin

Page 9: Newsletter-Ener & Industria Extractiva Mocambique-edicao Nr 11-Versao Inglesa

The biweekly Newsletter Energy & Extractive Industryis one of several channels of the

Media Project Energy & Extractive Industry Mozambiqueavailable in electronic format

www.energiamocambique.co.mz

and print quarterly Magazine Energy & Extractive Industry,we also have a television program

with the same name on Public Television of Mozambiqueevery Wednesdays.

The Energy & Extractive Industry Newsletter brings to you themajor events that can result in huge impact

in the energy sector and mining industry both at nationally,regional and internationally.

As the Media Project Energy & Extractive Industry MozambiqueThis Newsletter is the fi rst and the only one specialized in

Energy & Extractive Industry, which makes of it an ideal channeland unique to companies of the sector interested in advertising

their products, services and brands in this channel.

We are your communication consultantin the fi eld of ENERGY & MINING INDUSTRY

WE COMMUNICATE WITH ENERGY

Follow us on our website, twitter, facebook, newsletter, magazine and televisionE-mail: [email protected]

Prédio Cardoso - Av. 25 de Setembro, N. 1123, 1º e 2º andar, Porta N.Tel.: +258 21 32 71 16 / 21 32 71 17 • Fax: +258 21 30 09 48

Cel: +258 84 30 66 780 • Caixa Postal: 302E-mail: [email protected] • www.status.co.mz

Maputo - Moçambique

PROMOTIONAL PRICE TABLE: Up to June 31

4 edit ions: 10,000.00 MT / Month