talks between Total and Exxon relating to the sharing of a gas zone straddling their projects

(Agence Ecofin) – Total and Exxon Mobil, the operators of gas zones 4 and 1 respectively, have started consultations, the aim of which is to find a way to share the reserves of a gas zone which overlaps their development projects. The Mozambican state also participates in the exchanges.

On November 26, the French producers Total and American Exxon Mobil, started negotiations aiming to obtain an agreement on the sharing of gas resources of an area which overlaps each of their respective development projects, in Mozambique. The announcement was made at Reuters by three sources close to the two companies.

According to the latter, each of the producers seeks in particular to extract more gas from this zone towards its existing development synergies, in order to reduce production costs. The talks also involve the Mozambican government, which must give final approval to any new agreement.

Being a member of the production sharing agreement on the two perimeters, the Mozambican State will be able, in the event of an agreement, to increase its share of gas extracted from the sites and thus rely on greater gas revenues.

Total is developing zone 4 and plans to install a natural gas liquefaction plant there, called Mozambique LNG, which will have a production capacity of 12.88 million tonnes of LNG per year. Zone 1 adjacent to Zone 4 and operated by Exxon Mobil, for its part, should allow the production of 3.4 million tonnes of LNG per year, expandable to 15.2. This through the Rovuma LNG project.

Olivier de Souza

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