Extractive Industry and Energy


OIL & GAS (UP-STREAM)

Industry Brief: Mozambique sits today atop one of the worlds largest reserves of Natural Gas,with discoveries totaling around 180 Trillion Cubic Feet (TCF) by the both Area 1 and Area 4 operators at Rovuma Basin. However, in a bear market, materializing this potential is complex and costly. howevwer, considering that the Final Investment Decision (FID) for the Area 4 was taken on the 1st of June 2017 and that the FID for the Area 1 is expected to be taken by the end of 2017 or early in 2018, production can start by around 2022. Additionally, Mozambique has gas already under development in the Pande and Temane Area, with discoveries totaling around 3.59 TCF, and have launched the 5th round for both on-shore and off-shore licenses, as the Exploration and Production Concession Contracts (EPCCs) are being negotiated between the Government and the winners.
 

Whatana's goal: Whatana has partnered, through Indico Pearl Partners (IPP),with the consortium led by Delonex Energy and the consortium have been awarded one block (P5-A, Palmeira) in Manhiça, in Maputo province. IPP has option to acquire shares in the project SPV. Whatana aims to play a key role in the project helping the consortium achieving the production phase while contributing to boost the local Oil & Gas industries.

 

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GAS (MID-STREAM)

Industry brief: Gas exploration leads to various opportunities for industry in the mid-stream sector. From the Rovuma Basin gas development, there are substantial opportunities on-shore: Petrochemicals; Fertilizers (Ammonia/Urea); Gas-to-Liquids (GTL); Energy Generation; etc, in what is locally being designated as “Domestic Gas Opportunities”. in a Domestic Gas Public Bid Process, Yara International, Shell Mozambique and Africa Energy have secured the first amount of Domestic Gas to boost the local industries by producing Fertilizer, GTL and Energy, respectively.

Whatana's goal: Of all of these opportunities in the mid-stream sectors, Whatana identifies “Fertilizers” as key for the development of Mozambique's rural population. In that perspective, Whatana partnered with Yara International, ASA, the world’s largest fertilizer producer and distributer (Whatana has option to acquire shares in the Project SPV), to put up a production facility in Palma, CaboDelgado. Besides fertilizer production, Whatana wants to be actively involved in the strengthening of the local Agricultural Sector of Mozambique with nationally produced fertilizers, while helping position this project as one of the symbols of the revolution of the sector.

 

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ENERGY (POWER GENERATION)

 

Industry brief: Mozambique has a huge energy potential ranging from renewable (hydro, solar, wind, geothermal, oceanic and biomass) to fossil fuel sources (coal and natural gas). The country has a great regional role to play insofar as electricity generation and supply is concerned, where, at the moment, the national grid serves below 30% of the entire Mozambican Population.

Having in consideration that the economy growth in following years will reinforce the demand for more reliable Electricity, these potentialities, being coupled with the according investment in the distribution network, will help addressing the domestic needs as well as alleviate the region’s (SAPP) demand for Electricity.
 

Whatana's goal: Become a prominent Mozambican developer and investor in energy generation projects and help the country as well as the region filling the gap between demand and supply of more reliable electricity. At the moment, Whatana is co-developing the Moatize Coal Power Plant project (2,400 MW, with initial 300 MW), and is studying options to develop other renewable options, including Hydro, Solar and Wind.

 

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