“The end of the conflict is crucial to ensure a sustainable development environment,” stated ExxonMobil’s country manager in Mozambique, Arne Gibbs, during the opening of the 10th Mozambique Gas and Energy Summit & Exhibition, underway in Maputo since Monday.
He acknowledged the stability fostered by Mozambique’s Defence and Security Forces (FDS) in Cabo Delgado, a gas-rich province that has faced armed attacks since 2017.
Gibbs assured that following the lifting of the force majeure clause and improved security—which had previously been triggered in 2021 by TotalEnergies, the leader of the Area 1 consortium—ExxonMobil, set to explore Area 4 of the Rovuma basin, could commence operations in 2029/2030, with initial investments exceeding $300 million (€254.2 million), including infrastructure expansion in Afungi and the creation of at least 400 direct jobs for locals.
He reiterated that the Final Investment Decision (FID) would only be feasible after the force majeure is lifted, which led to the suspension of operations in Area 1, with interconnected projects.
“We believe Mozambique’s future in the energy sector is bright. With stability and cooperation, this will be a transformative milestone not only for the country but for the entire region,” said Arne Gibbs, also expressing the desire for Mozambican companies’ involvement in the project.
In October 2024, ExxonMobil chose the American company McDermott to collaborate on the engineering project for its mega gas production project in Mozambique, aiming to conclude this year, preceding the final investment decision.
As per the information provided by the American consultancy, McDermott was selected to lead the consortium also comprising Saipem and China Petroleum Engineering and Construction Corporation. They have up to 16 months from that point to complete the technical and engineering design, known as FEED (Front End Engineering Design), of the Rovuma LNG project.
“The Rovuma LNG Phase 1 project represents a significant development for the country, providing a significant opportunity for economic growth. The project includes the liquefaction and export of natural gas extracted from the offshore Area 4 fields off the Afungi peninsula in Mozambique [Cabo Delgado],” reads the information from McDermott.
The consortium, besides ExxonMobil, includes the Italians of Eni and the Chinese of China National Petroleum Corporation (CNPC), holding a 70% stake in the Area 4 Exploration and Production Concession Contract.
Exxon’s project in Cabo Delgado initially planned for a production of 15.2 million tonnes of gas per year, later revised to 18 million tonnes.
The country manager of ExxonMobil in Mozambique, Arne Gibbs, indicated on May 3 the possibility of the investment decision being made by the end of 2025, adding that the Rovuma LNG project would be “the largest liquefied natural gas project in Africa and could be the largest project in African history.”
In March, the financial rating agency Fitch stated that the resumption this year of TotalEnergies’ Liquefied Natural Gas (LNG) project in Mozambique would “facilitate” the anticipated decision by ExxonMobil for another mega project in the north of the country.
Mozambique has three approved development projects for exploiting the natural gas reserves of the Rovuma basin, classified among the largest in the world off the coast of Cabo Delgado, including those of TotalEnergies, still suspended due to security issues, also on the Afungi peninsula, as is ExxonMobil’s.
