African Century Real Estate Palma Developments Break Ground

Source: African Century

MAPUTO - August 14th, 2013 - African Century Real Estate Mozambique begins work on the construction of the condominium “Palma Residences” and “Palma Industrial Park”.

The discovery of large reserves of hydro carbonates, in the Rovuma Basin, attracts both national and international companies. In the Cabo Delgado province there are new jobs, services and high expectations. The region requires housing solutions and logistical infrastructures.

As development happens in Africa, African Century Real Estate (ACRE), invests in real estate in areas located in the North of Mozambique.

The first stone was laid in July 2013 with “Palma Industrial Park” and the residential complex “Palma Residences”. ACRE is finalizing the architectural project for the construction of the “Palma Business Hotel”, to begin in 2014.

The condominium housing “Palma Residences” bring real estate solutions for the big changes and increase in demand occurring in the region. The “Palma Industrial Park” provides essential infrastructure to support the development of light industry.

“Palma Residences” – follows a construction plan that will provide its first habitable units, in line with an urban model, in February 2014. Each house constitutes of two bedrooms, two bathrooms, a kitchenette, a large living room and a comfortable terrace. The complex’s communal infrastructures include a pool and a leisure area. There will also be parking and 24h security provided.

“Palma Industrial Park” – has foreseen the construction of 21 warehouses (2 mins from Palma) 600 m2 with a patio of 300 m2 in total. Each warehouse will have an area of 40mx15m and a height between 6 – 10m, according to the Client´s needs. The construction of the 1st warehouse is due to end in November 2013.

Pedro Pinto, Executive Administrator of ACRE Mozambique, stresses “the importance of local architecture for the development of the regions and the promotion of social responsibility and environmental values” wherever African Century invests.


Oil India Limited (OIL) signs definitive agreements to acquire 10% of Area 1

Source: Oil India

NEW DELHI, June 25, 2013 - Oil India Limited (“OIL”), along with ONGC Videsh Limited (“OVL”), has signed definitive agreements in Singapore on 25th June 2013 with Videocon Mauritius Energy Limited to acquire 100% of shares in Videocon Mozambique Rovuma 1 Limited, the company holding a 10% participating interest in the Rovuma Area 1 Offshore Block in Mozambique (“Area 1”), for US$ 2.475 Bn. The acquisition is expected to be implemented via a newly incorporated special purpose vehicle jointly owned by OIL and OVL. The acquisition is subject to the approvals of the Governments of Mozambique and India, relevant regulatory approvals, pre-emption rights and other customary conditions. The transaction is expected to close in the fourth quarter of 2013.

Area 1 covers approximately 2.6 million acres in the deepwater Rovuma Basin offshore Mozambique and represents the largest gas discovery offshore East Africa with estimated recoverable resources of between 35 and 65 TCF as per operator’s estimates. Partners in Area 1 include Anadarko, operator of the project, ENH, Mitsui, BPRL and PTTEP. Area 1 has the potential to become one of the world’s largest LNG producing hubs with first LNG expected in 2018.

The Area 1 LNG project is strategically located to competitively supply LNG to India, and OIL’s and OVL’s participation in the project will facilitate access to the growing Indian gas market which will supplement the country’s energy security endeavour. OIL and OVL will also devote significant financial and technical resources to the development of the project. This investment is expected to further enhance the strong business and cultural links between Mozambique and India.

This investment provides an early entry for OIL into one of the world’s largest natural gas assets. It will significantly enhance OIL’s Reserves base improving the longer term growth prospects of the Company. OIL’s Chairman & Managing Director, Mr. S. K. Srivastava said, “This acquisition is in line with our Strategic 2020-21 Plan which has a strong focus on inorganic growth across the energy value chain. It will also provide us with first hand experience of setting up and operating a deep water natural gas field and LNG plant, while further helping in addressing the growing energy requirements of our country. This is a high quality world class asset with one of the largest discovered resource base, which combined with its locational advantage makes this a highly attractive investment proposition for us.” Mr. T. K. Ananth Kumar (Director - Finance) and Mr. N. K. Bharali (Director - HR&BD) led the Oil India team in the successful execution of this important transaction.

Morgan Stanley is acting as the exclusive financial adviser, Halliburton as Technical consultants, Ernst & Young as tax and accounting adviser, Simmons & Simmons as legal adviser to OIL for this transaction.

About OIL

Incorporated in 1959, Oil India Limited (BSE: 533106, NSE: OIL) is the second largest national oil and gas company in India as measured by total proved plus probable oil and natural gas reserves and production. It is engaged in the business of exploration for oil and gas, production of crude oil, natural gas and LPG and transportation of crude oil, natural gas and petroleum products. The company has over 150,000 sq km of Petroleum Exploration License (PEL)/ Mining Lease (ML) areas for its exploration and production activities. OIL has 65 domestic E&P blocks and an International presence spanning USA, Venezuela, Gabon, Egypt, Nigeria, Libya and Yemen among other countries. The company had total income of INR 9,948 Cr (US$1.83 Bn) and PAT of INR 3,589 Cr (US$ 0.66 Bn) in FY13 and produced 6.34 MMTOE of Oil and Gas in the corresponding period. OIL has total 2P reserves of 916 MMBOE in India with a reserve replacement ratio of over 164% for domestic assets in FY13. Market capitalisation of the Company was INR 33,417 Cr (US$ 5.59 Bn) as of 24th June 2013.

Note: Turnover and profit data for OIL presented in US$ for illustrative purposes only and converted from Indian Rupee at the exchange rate of INR 54.45 for US$1 (average RBI reference rate for 2012-13). Market capitalisation of OIL as on 24 June 2013 converted at INR 59.73 for US$1 (RBI reference rate of 24 June 2013).


Eni Sells 20% Stake in Area 4 to CNPC

Source: Nasdaq

BEIJING, Mar. 14, 2013 - Italian oil and gas firm Eni S.p.A. and Petrochina Company Limited, controlled by China National Petroleum Corporation or CNPC, signed an agreement for Eni’s sale to CNPC of 28.57% of Eni East Africa’s shares, owner of the 70% interest in Area 4, in Mozambique. With this operation, CNPC indirectly acquires a 20% stake in Area 4, while Eni remains the owner of 50%. The agreed price is equal to US$4.210 billion.

The remaining shares in the Area are held by Empresa Nacional de Hidrocarbonetos de Mocambique (ENH, 10%), Kogas (10%) and Galp Energia (10%).

The completion of the transaction is subject to the fulfillment of certain standard conditions including obtaining all necessary authorizations from Mozambique’s authorities.

Eni and CNPC also signed a Joint Study Agreement for cooperation for the development of the Rongchang shale gas block, which covers about 2,000 square kilometers in the Sichuan Basin.

The agreement will allow for the study of the area which will be conducted simultaneously with the negotiations for the signing of the Production Sharing Agreement.

From CNPC: Press Release
From Eni Website: Press Release


Anadarko Announces Advancement of Mozambique LNG Project


Source: Anadarko

HOUSTON, Dec. 21, 2012 – Anadarko Petroleum Corporation (NYSE: APC) today announced that it has reached Heads of Agreement (HOA) with Eni, establishing foundational principles for the coordinated development of the common natural gas reservoirs spanning both Mozambique’s Offshore Area 1 (operated by Anadarko) and Offshore Area 4 (operated by Eni). The HOA is designed to facilitate a work program whereby the two operators will conduct separate, yet coordinated, offshore development activities, while jointly planning and constructing common onshore liquefaction facilities in the form of an LNG (liquefied natural gas) park in the Cabo Delgado Province of northern Mozambique.

Reaching an HOA with Eni is a significant step that preserves the project timeline,” said Anadarko President and CEO Al Walker. “We expect the HOA to lead to a unitization agreement to further facilitate the efficient development of the common resources, as well as the independent reservoirs on both blocks, enabling enhanced economies of scale through shared infrastructure and facilities. Our commercial and technical teams have proven the ability to work collaboratively through these discussions, as we work alongside the Mozambican government toward a shared target of first LNG cargoes in 2018.”

FRONT-END ENGINEERING AND DESIGN (FEED) CONTRACTS

In addition, multiple FEED contracts have been awarded for both onshore LNG construction and offshore installation.

We are very pleased to also announce the awarding of multiple FEED contracts advancing the onshore and offshore components of this LNG project in northern Mozambique,” continued Walker. “Awarding FEED is an important event for Mozambique, as it marks a significant milestone in the development cycle of this project. We are pleased with the alignment of our co-venturers and 2 grateful for the support of ENH and the government of Mozambique in moving this world-scale project forward.”

OFFSHORE INSTALLATION FEEDS (OFFSHORE AREA 1)

Subject to final contract execution, independent, competitive offshore installation FEEDs will be performed by the following three parties:

  • Technip USA, Inc.
  • A joint venture comprised of Subsea 7 (US) LLC and Saipem SA
  • A joint venture comprised of McDermott, Inc. and Allseas USA Inc.

The offshore FEEDs will be effective immediately following contract finalization and will focus on Area 1 subsea production systems for the Prosperidade complex. The FEEDs will each culminate with the delivery of a full engineering, procurement, installation and commissioning plan for the Offshore Area 1 development.

ONSHORE LNG FEEDS (JOINT ONSHORE DEVELOPMENT)

Subject to final contract execution, independent, competitive LNG FEEDs will be performed by three parties comprised of the following recognized LNG contractors:

  • A joint venture comprised of JGC Corporation and Fluor Transworld Services, Inc.
  • A joint venture comprised of an affiliated company of CB&I and Chiyoda Corporation
  • International Bechtel Co. LTD.

The FEEDs will develop an overall LNG park plan allowing the capability to produce approximately 50 million tonnes of LNG per annum (MMTPA) in future years. Each of the LNG FEEDs will deliver designs for an initial development consisting of four liquefaction trains with capacity of 5 MMTPA per train. The FEEDs will culminate in the delivery of a full engineering, procurement and construction plan, and a lump-sum turnkey price for the initial two 5-MMTPA trains, as well as associated common facilities. Specifics regarding the second two 5-MMTPA trains will be developed during the FEED process.

SUPPLEMENTAL INFORMATION

Details regarding the awarding of FEED contracts for the offshore installation and onshore LNG construction, as well as conceptual diagrams of the LNG park can be found in the supplemental information attached to this news release or on our website at www.anadarko.com.

OFFSHORE AREA 1

Anadarko is the operator of the Offshore Area 1 Block with a 36.5-percent working interest. Coventurers include Mitsui E&P Mozambique Area 1, Limited (20 percent), BPRL Ventures Mozambique B.V.(10 percent), Videocon Mozambique Rovuma 1 Limited (10 percent) and PTT Exploration & Production Plc (8.5 percent). Empresa Nacional de Hidrocarbonetos, ep’s (ENH) 15- percent interest is carried through the exploration phase.

To date, Anadarko and its co-venturers have discovered two major natural gas complexes in the Offshore Area 1 of Mozambique’s Rovuma Basin. The Prosperidade complex is estimated to hold between 17 and 30-plus trillion cubic feet (Tcf) of recoverable natural gas resources in the Offshore Area 1 Block. The separate and distinct Golfinho/Atum complex, which is fully contained within the Offshore Area 1 Block, is estimated to hold 15 to 35 Tcf of recoverable natural gas resources. Evaluation of a third discovery on the block, Tubarão, is ongoing with an appraisal well that is expected to be drilled in early 2013.

Anadarko Petroleum Corporation’s mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world’s health and welfare. As of year-end 2011, the company had approximately 2.54 billion barrels-equivalent of proved reserves, making it one of the world’s largest independent exploration and production companies. For more information about Anadarko and APC Flash Feed updates, please visit www.anadarko.com.

Source: Anadarko

Download Pdf of Press Release
Download Pdf of LNG Conceptual Layout in Palma


Pembaland Partner quoted in The Guardian

Boom time for Mozambique, once the basket case of Africa


A Mozambican gold miner in Manica province. The wealth of resources in the southern African country could herald a new era for a people still recovering from 15 years of civil war. Photograph: Goran Tomasevic/Reuters

By David Smith in Maputo
March 28, 2012

The shells of stylish colonial-era buildings, like shipwrecks on the ocean floor, still give Maputo a distinct character. But the capital of Mozambique no longer feels like an urban museum. Amid the crumbling grandeur rumble cranes and mechanical diggers, carving out a different skyline.

A construction boom is under way here, concrete proof of the economic revolution in Mozambique. Growth hit 7.1% last year, accelerating to 8.1% in the final quarter. The country, riven by civil war for 15 years, is poised to become the world’s biggest coal exporter within the next decade, while the recent discovery of two massive gas fields in its waters has turned the region into an energy hotspot, promising a £250bn bonanza.

The national currency was the best performing in the world against the dollar. Investment is pouring in on an unprecedented scale; as if to prove that history has a sense of irony, Portuguese feeling Europe’s economic pain are flocking back to the former colony, scenting better prospects than at home. Increasingly this is the rule, not the exception in Africa, which has boasted six of the world’s 10 fastest-growing economies in the past decade. The first oil discovery in Kenya was confirmed on Monday, while the British firm BG Group announced that one of its gas fields off the Tanzanian coast was bigger than expected and could lead to billions of pounds of investment. Bankers, analysts and politicians have never been so bullish about the continent, which barely 10 years ago was regarded as a basket case.

From Cape Town to Cairo, there are signs of a continent on the move: giant infrastructure projects, an expanding middle class, foreign equity scrambling for opportunities in telecoms, financial services and products aimed at a billion consumers. Growth is no magic bullet for reducing inequality or fostering democracy, but the stubborn truth that it is still the world’s poorest continent has done little to dull the confidence and hype about the African renaissance.

Africa has 16 billionaires, topped by Nigerian cement tycoon Aliko Dangote with an estimated fortune of $10.1bn (£6.5bn), according to Forbes magazine. Economic growth across the continent will be 5.3% this year and 5.6% in 2013, the World Bank predicts, with some countries hitting double digits. “Africa could be on the brink of an economic take-off, much like China was 30 years ago and India 20 years ago,” the bank says. Many of the African lions are already outpacing the Asian tigers.

Africa exports its natural resources with the price and demand for them determined by growth in China, whose bilateral trade with Africa has grown tenfold in a decade, eclipsing that of the United States.

In return, Chinese loans are funding many of the infrastructure projects changing the face of the continent.

There are an estimated 1 million Chinese in Africa: trading, investing, building, labouring, running micro-businesses and, critics say, exploiting its wealth of natural resources.

On a recent afternoon at the Southern Sun hotel in Maputo, overlooking the Indian Ocean, the arrival of a delegation of Chinese businessmen in smart suits surprised no one. Mozambique is now an immensely attractive prospect as it emerges from a traumatic past of colonialism and civil war.

When the Portuguese pulled out hastily in the mid-1970s, they did so with spite, sabotaging vehicles and pouring concrete down wells, lift shafts and toilets, leaving the country in disarray. The civil war claimed about a million lives. Devastated by famine and economic mismanagement, it was only in 1994 that the first democratic election paved the way for a long, hard recovery.

Today there is a growing middle class, as seen in the opening of shopping centres and, in 2010, a private hospital offering the country’s first cosmetic surgery. And now Mozambique’s long-untapped energy resources are coming into play. The remote Tete province boasts possibly the last big coking coal mine in the world. The giant Brazilian mining firm Vale, which began shipping from there last September, is spending billions on operations including a coal terminal and railways. It aims to double capacity from 11m tonnes a year to 22m by 2014.

Jackpot

But it is the recent discovery of a gas field off the northern coast that is already being described as a “jackpot” with the potential to transform this impoverished, donor-dependent country’s fortunes – and which has turned east Africa into the most exciting prime target for energy multinationals.

Last year the US oil group Anadarko found an estimated 850bn cubic metres of natural gas in Rovuma basin – more than three times the reserves left in the North Sea. The Italian energy group ENI also made two big discoveries nearby.

Mozambique’s time has come partly thanks to location: Asia, especially energy-hungry India, is eager to acquire liquefied natural gas. The discovery triggered a bidding war for the London-listed Cove Energy, which has an 8.5% stake in the Rovuma gas field.

There is competition from Shell and the Thai state-owned PTT Exploration, while two Indian firms are also considering offers.

Economically this will be of huge benefit [to east Africa],” John Craven, Cove’s chief executive, told the Sunday Times last year. “For the economy of Mozambique, this is a huge project. They will have the ability to transform their country if they play their cards right.”

Shell, BP and Total are also reportedly vying to acquire a 20% stake in Eni’s gas field. Local analysts estimate that the gas could bring Mozambique revenue of $200bn to $400bn over 40 years. This would be a huge windfall in a country where, despite the impressive recent growth, GDP stands at a modest $1,100 a head and government spending at $6bn.

And where there is gas, there is usually lucrative oil. Mateus Zimba, country manager for the South African energy company Sasol, said: “Looking at the size of the gas in place, I think this country can’t be the same any more. This has to change the nature of what Mozambique does. I’m looking at it as a Mozambican and saying we will be a world player.

I hope coal and gas will give us enough independence to take control of our own destiny, and looking at foreign investment rather than foreign donations. I can only hope we are on the right track to avoid polarisation in this country, because that is the biggest issue we face.”

The lack of wealth trickling down has cast a shadow over Africa’s success stories. This is the case in Mozambique, which ranks fourth from bottom of the UN’s human development index behind the likes of Afghanistan, Ethiopia and Liberia. About 54% of people remain poor, according to a 2008-09 survey, and poverty reduction has slowed down. This is despite anti-poverty government budgets that allocate a fifth of spending to education.

Will coal and gas change anything? Africa’s history is littered with broken promises of spectacular finds that enrich greedy despots and giant corporations but leave the people worse off than ever. The so-called “resource curse” is a constant threat, although today’s governments and campaigners alike are more alive to it. Shell admits that Mozambique offers a chance to rehabilitate its image after the PR debacle of its oil business in Nigeria.

Gabriel Fossati-Bellani, an Italian-born entrepreneur whose ventures provide services for the energy industry, is optimistic. “It’s a huge jackpot of gas,” he said. “Mozambique has tremendous potential through this opportunity and is already showing it wants to take the right approach to equitable distribution of wealth. The local business environment is ready for a larger participation in the profits of the sector.”

I would bet not only on short-term business growth in Mozambique but the long term, including a business-minded government trying to deliver equity.”

He believes the country can steadily replace dependency on foreign aid with its burgeoning private sector. “The hype is real. It’s going to happen. The country is in the middle of its logarithmic curve of compounded growth,” he said.

People are expecting a lot from Mozambique – and they should. Business is growing, the middle class is growing, the level of professionalism and service delivery has gone up in leaps and bounds. Maputo is a metropolis now. It functions like a city should in this day and age.”

That means new shopping centres and hotels struggling to keep up with demand, restaurants where pre-booking is now a must and lengthening traffic jams of expensive cars. Almost every week brings a fresh business delegation from countries such as Australia, Brazil, Britain, India, Norway, Turkey and China, which is making its mark here as in the rest of Africa.

Most ambitious of all is a planned $1bn waterside complex in Maputo with 300,000 square metres of office, residential, retail and hotel buildings, which is expected to take 15 years to construct. José Pinheiro, chief executive of property developers CR Holdings, said: “It will be a new rebirth of the city. It is probably the most important development since the beginning of the 20th century.

I came here from Portugal in 1997 and the differences are huge. Back then, a director in the government probably had a salary of about $400-$500; now it’s $2,000-$3,000. The development in the social tissue of the country is amazing. There is still a long road but it has evolved really well.”

He added: “You see more investment coming from the UK, Germany, Spain.

There is growing awareness that the road to development is in Africa. They understand the same thing that China did 10 years ago. They want to be on the same road.”

Alongside its other projects in Mozambique, CR Holdings is spending $50m to build a hotel, housing and Portuguese-designed shopping centre in Tete, a hot and isolated town dubbed “the new Johannesburg” because of the coal rush expected to attract 3,000 foreign workers. But this phenomenon is also raising grave concerns over local price inflation and its effects on the poor, including malnourished children.

Expats

Natural resources have positive and negative impacts,” Pinheiro conceded. “Rentals are suffering from coal mines bringing expats to the city. But it’s also driving the building of new housing. It will bring investment and income to the country and benefit small companies. For example, a catering company in Maputo got work in Tete, producing 14,000 meals a day.”

The role of donors, the World Bank and the International Monetary Fund should help insulate the Mozambican economy against the most pernicious effects of the resource curse, Pinheiro believes. But it will require patience and planning – accessing the gas will take the best part of a decade, and require tens of billions of dollars of investment.

Even then, some remain sceptical of what it will mean for Mozambique’s 23 million people. They question whether the government will direct enough of its new revenue towards infrastructure, which is still sorely lacking, and improving agricultural productivity – the biggest single tool for reducing poverty.

Erik Charas, director of @Verdade (the Truth), Mozambique’s biggest circulation newspaper, warned: “There is a lack of transparency in these deals. They’re making deals for generations to come and I have no idea about them. The lack of transparency is a major flaw.

The people in power are negotiating on their own behalf. We might end up with 50 billionaires who own private planes and the rest of the population impoverished. That is our biggest fear.”

Coal and gas have the potential to trickle down,” he added. “There is enough time for things to be done right. The government should prioritise the people instead of impoverishing the communities where these things sit.

The potential is there and it’s not messed up yet. The country is definitely wealthy. We have no right to complain because we have this opportunity. But if we don’t do it right, we could be poorer than we are now.”

Adrian Frey, director of an estate agency, Pam Golding Properties Mozambique, summed up the mixed mood: “Gas changes everything. It changes our thinking. The investment expected in the next 10 years is $30bn. There is a huge demand for building and water and restaurants and banking facilities. We are on the right track and everything is getting better.”

Source: The Guardian

Categories


Archives