Friday, January 15, 2010

Mozambique News Update: SADC Heads of State Attend While President Guebuza Takes Oath; Prime Minister on Gas Reserves Exploration

Guebuza sworn in

From Farai Dzirutwe in MAPUTO, Mozambique
Zimbabwe Herald

MOZAMBICAN President Armando Emilio Guebuza was yesterday sworn-in for his second and final five-year term at a colourful ceremony attended by seven Sadc Heads of State and Government, including President Mugabe.

Also present were four former regional leaders and scores of dignitaries from across the continent who joined thousands of jubilant Mozambicans in witnessing the event held at Independence Square in central Maputo.

Other regional leaders who attended the ceremony were Sadc chair and DRC President Joseph Kabila, South African President Jacob Zuma, Zambian President Rupiah Banda, President Bingu wa Mutharika of Malawi, President Hifikepunye Pohamba of Namibia, and President Jakaya Kikwete of Tanzania.

Swaziland was represented by its Prime Minister Sibusiso Dlamini, while Kenya and Botswana were represented by their vice presidents.

The former regional leaders in attendance were Dr Kenneth Kaunda (Zambia), Cde Joachim Chissano (Mozambique), Mr Festus Mogae (Botswana) and Cde Thabo Mbeki (South Africa), while former Mozambican and South African First Lady Mrs Graca Machel made a surprise appearance.

President Guebuza, the country’s third president since independence in 1975, took his oath of office at midday before the president of the Constitutional Council, Mr Antonio Luis Mondlane, and council judge Mrs Lucia Ribeiro.

Mr Mondlane handed over ceremonial paraphernalia, which included the national flag, the national emblem, a copy of the country’s constitution and a gavel to Cde Guebuza who officially began serving his second tenure as head of state.

The ceremony started with Cde Guebuza inspecting a guard of honour mounted by the Mozambican presidential guard, the air force and the navy after which he was sworn-in.

President Mugabe, Dr Kaunda and President Zuma drew the loudest cheers from the crowd when the master of ceremonies introduced the VIPs after the swearing-in.

Proceedings were interposed by entertainment from poets and various local dancing and choral groups.

Cde Guebuza’s inauguration followed the validation of the results of the October 29 2009 presidential and legislative elections by the country’s Constitutional Court.

Opposition leader Mr Afonso Dhlakama of Renamo, who predictably boycotted yesterday’s ceremony in apparent protest, got 16 percent of the votes cast, while Mr Daviz Simango of the newly-formed Mozambique Democratic Movement got 9 percent.

Addressing the crowd after his installation, Cde Guebuza urged Mozambicans to remain united in efforts to develop the country, which went through a civil war for almost three decades.

He said his government would focus on decentralising the country’s administrative structures, promoting good governance, fighting poverty and implementing social investment programmes for the good of the citizenry.

In apparent reference to Renamo’s boycott, Cde Guebuza said the country would not be able to overcome obstacles if it remained divided.

"National unity is the blood that transports the necessary immunities so that as a nation, we are not weakened by obstacles.

"The only alternative to peace is peace itself.

National peace and unity are the foundations for the consolidation of multi-party democracy in Mozambique."

Earlier before the inauguration ceremony, President Mugabe met Swaziland Prime Minister Dlamini, who delivered a special message from King Mswati III.

The Head of State and Government and Commander-in-Chief of the Zimbabwe Defence Forces also met a group of Chinese businesspeople who are behind major property development in Maputo, but details of the meeting were not available.

Meanwhile, the Sadc Troika chaired by the DRC met in Maputo yesterday to debate a proposal by Malawi to host the next African Union summit scheduled for the end of July.

The Troika also comprises the outgoing chair, South Africa, and the incoming chair Namibia.

The second Troika on Politics, Defence and Security was also meeting in the Mozambican capital last night to review regional security. This body consists of Mozambique (chair), Swaziland (outgoing chair) and Zambia (incoming chair).

Foreign Minister Dr Simbarashe Mumbengegwi represented Zimbabwe at the meetings.

President Mugabe returned home yesterday evening.


New gas finds

03/31/09, Biodun Omojola

Mozambique's gas reserves are growing as more finds are made by prospecting companies.

Petroliam Nasional Bhd, (Petronas), the Malaysian national oil company, wants Mozambique to extend the deadline for its oil prospecting concession to enable it analyse drilling results from its oil block. Petronas has been prospecting for oil in the Zambezi River delta of the southern African country investing $50 million in the drilling of a single well in the basin. It claims the well looks promising hence the request. Officials of Mozambique's National Oil

"It is in this context that the company requested to extend the concession period in order to have time to evaluate the traces found," says Mozambique National Oil Institute (INP) CEO Arsenio Mabote.

Although INP has not given Petronas any word, contrary or otherwise, on the request, except saying it "will look into that and make a decision," there are indications the request would be granted. Mozambique, after years of civil war and political instability, is gradually transforming into a stable nation. While it has a good hydrocarbon industry, long years of civil strife have blighted the development of the industry. Its upstream potential appears to lie in natural gas rather than oil. Efforts of the likes of Petronas, with oil prospecting licenses, are the key on which the oil sector is expected to be developed. Industry watchers believe it is precisely the reason why Petronas' request will be approved.

Furthermore, it is the lack of development of Mozambique's gas industry that is propelling state oil company Empresa Nacional de Hidrocarbonetos (ENH) to seek international partners to explore for gas in the southeastern Buzi bloc. "Based on the features of the area, it is believed that more gas could be discovered. That is why ENH has opted to contact companies with adequate and advanced technologies to carry out the works we intend to do," according to a senior official of ENH. The government in 2008 awarded ENH an eight year license to explore in Buzi. The exploration process, is, however, delayed, a result of the international financial crisis. ENH is looking for partners.

Mozambique has major proven gas reserves. Buzi, for instance, has estimated reserves of between 10 and 17 billion cubic feet of gas, but does not have the technical and financial capacity to exploit them. The government, announced last November, that two new natural gas fields, licensed to a consortium led by South African petrochemical group Sasol, were discovered in the southern Inhambane province adding to its existing reserves. Other natural gas fields include Pande, Temane and Buzi-Divinhe. Pande has reserves estimated to be in excess of 2.1 trillion cubic feet (Tcf), while Temane reserves are in the region of 1 Tcf. Buzi, has recoverable reserves of about 10Bcf.

Actual gas production is limited to an insignificant amount from the Pande gas field. With various reserves of natural gas discovered regularly, however, Mozambique is likely to become a major producer of gas in the area in the medium term. A major project is being negotiated between ENH, Sasol Petroleum International and Enron Oil and Gas to construct a pipeline that will transport gas from both the Pande and Temane gas fields to the Gauteng area in South Africa. The pipeline between Beira and Harare has been extended and is operating close to full capacity even with an expansion through the addition of pumping stations.

Mozambique launched its First Offshore Licensing Round on March 2000 offering 14 blocks mainly in the Mozambique Basin, covering the shallow and deep Zambezi delta area. Mozambique's main players include Enron Oil and Gas Resources Inc, Energy Africa, Sasol Petroleum International, Leopardus Resources Limited, Zarara Petroleum Resources, TotalFinaElf SA, Trefoil Ltd, and Lonrho de Provuma Petroleum. British Petroleum, Elf and Western are involved in geophysical surveys of offshore areas.

Petronas started exploring in offshore Mozambique in 2002, when it was awarded rights in the Zambezi Delta. Last September, the company was awarded a second $40.6 million oil prospecting license for two offshore blocks in the Rovuma Basin under the country's Second Licensing Round. The license, which allows Petronas Carigali Mozambique to search for oil in blocks 3 and 6, is valid for eight years and could be renewed for a further 30 years, if oil is found.

Malaysia's Petronas holds a 90 percent shareholding in the company with the remainder owned by Mozambique's national hydro-carbon Company Empresa Nacional de Hidrocarbonetos (ENH). Mozambique has granted 10 oil prospecting concessions to US, Norwegian and Malaysian companies, among others, at a cost of $300 million. Its department of mineral resources and energy regulates the industry, while the control of the upstream oil industry rests with ENH. It has exclusive rights to explore for and develop petroleum in Mozambique, and is permitted to exercise these rights in association with foreign investors.

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