Maputo, 8 May (AIM) – The US oil and gas company ExxonMobil, which leads Rovuma LNG Project, in Rovuma Basin, northern Mozambican province of Cabo Delgado, has announced that it expects to generate, over the course of 30 years, up to 150 billion US dollars in revenue for the Mozambican state.
According to Arne Gibbs, ExxonMobil, Managing Director in Mozambique, speaking on Thursday at the 12th Mining and Energy Conference and Exhibition, the company is close to the Final Investment Decision (FID), which is scheduled for the second half of this year.
The Managing Director revealed that, last April, the company confirmed the submission of the project’s new development plan to Mozambican government.
“I would like to say that it will increase government revenue by 60 percent during the life of this project. We guarantee that the new concept of Rovuma LNG will allow for greater production of liquefied natural gas (LNG) with significant economies of scale”, he said.
According to Gibbs, Rovuma LNG is the largest project in the history of the African continent and “its technical concept represents a decisive change, involved in two years of engineering that culminated in the adopted modular model that will allow for the production of more LNG at optimized costs.”
“The secret to the success of this concept is very simple: economies of scale. If you can do more, bigger size, more LNG volume, for the same price, you always win. We remain committed to making the final investment decision during the second half of this year”, he said.
In addition to long-term tax revenues, he said, ExxonMobil also intends to dispel the perception that the economic benefits of the project will only emerge after the start of gas production. “There will be financial inflows for the State even during the construction phase, through taxes, fees, and participation from Mozambican commercial banks”, he said.
“There are several revenue streams that begin even during the construction phase,” he explained.
(AIM)
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