Norwegian Oil for development in Mozambique1

8/14/2019 Norwegian Oil for development in Mozambique1

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O i l f O r D e v e l O P m e N t

2006-2007

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M O Z A M B I Q U E

Project:

Institutional Support NPD - INP, New Programme

Cooperating institution: Instituto Naional de Petroleo (INP)

Goal:To strengthen the administration o the petroleum resoures to

enhane eonomi development and welare in Mozambique.

Objectives: Further develop the administrative apaity related to petroleum

resoure management in Mozambique.

Project period: 2006 2010

Total budget: 41 mill NOK (USD 6.5 mill)

Programme:

The programme onsists o the ollowing main elements:

Further develop the upstream petroleum legal and ontratual ramework Poliy and strategy Monitoring and ontrol Promotion o eploration areage Negotiations and liensing Assessment o petroleum resoures Management o petroleum data Administration, Human Resoures and Finaning

cOUNTRY FAcTS:Ofcial Name:

Republi of Mozambique

Capital: Maputo

Chie o state:

President Armando Guebuza

Head o Government:

Luisa Diogo

Population:

19 685 505 (2006)

Petroleum sector,

key fgures:

Annual oil prodution:

0.5 mill bbl ondensate (2005)

Annual gas prodution:

2.2 bill m3 (2005)

Organisation o the sector:

Ministry Of Mineral Resoures

(MIREM)

Instituto Naional de Petroleo

(INP) is responsible for promo-tion, liensing and supervision of

upstream petroleum operations.

Empresa Naional de Hidroar-

bonetos de Moambique (ENH)

National Oil company - two

daughter ompanies:

companhia Moambiana de

Hidroarbonetos (cMH) - Manage

Mozambian ownership in Pande

- Temane Gas Projet

companhia Moambiana de

Gasduto (cMG)- Manage

Mozambian ownership in

the Natural Gas Pipeline

from Pande - Temane


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Other tasks/ativities o o-operation may be agreed

upon in the Annual Meeting reerred to in the 2006

Agreement between Mozambique and Norway.

Contact:

INP: Arsenio Mabote, chairman

arsenio. [email protected]

NPD: Mr. ystein Kristiansen, Projet coordinator,[email protected]

Cooperating institutions in Norway:

NORAD

Petroleum Saety Authority

Pollution control Authority Norway

Institute o Fisheries

Petrad

Brie history o the projet:The National Diretorate or coal and Hydroarbons

(NDcH) was set up by the Government o Mozambiquein 1995 under the administrative ontrol o Ministry o

Mineral Resoures and Energy. The objetive o the

Mozambian Government was to split the responsi-

bilities or ommerial and regulatory governmental

untions. Both untions had up to that time been the

responsibility o the National oil ompany Empresa

Naional de Hidroarbonetos (ENH). INP was estab-

lished in 2005 as an autonomous institute under the

new Ministry o Mineral Resoures. INP took over all

untions o NDcH eept governane responsibilities

or oal.

The New Institutional Support Programme is the

last in a sequene o Norwegian support ativities to

the petroleum setor in Mozambique starting as early

as 1983. currently a team o NPD eperts, eperts

rom other institutions and international and loal

onsultants assist INP.

The New Programme refets that the petroleum

setor in Mozambique has beome muh more ative

with a potential or signiant inrease also in oshore

eploration. Epansion o the natural gas proessing

and transportation inrastruture is likely to go ahead.

The loal markets or natural gas is also ast developing.The petroleum setor will remain an important eo-

nomi setor in Mozambique or many years and will

have signiant growth potential. INP, the government

regulator, needs aess to tehnial epertise to urther

develop governane apaity to ae the inrease in

ativity and new hallenges. The new programme will

strengthen the good governane and environmental

issues and health and saety support will ontinue.

Regional ooperation will remain important.

Ativities in 2006LEGAL/REGULATORY FRAMEWORK

A drat Regulation or the Liensing o Petroleum

installations was elaborated by INP with assistane o

loal lawyers and the Ministry o Industry lawyers

and is urrently waiting or nal ompletion.

A spei Environmental Regulation or thePetroleum setor is being prepared by INP and

Ministry o Environment (MIKOA).

POLIcY/STRATEGY

A Gas commission has been reated by the Republi

o Mozambique and the Republi o South Aria to

harmonize and ailitate the transportation and om-

merialization o natural gas projets aross the border.

This ommission held two meetings during 2006.

A gas strategy workshop was onduted in Deember,

looking at uture senarios or Mozambian gas.The proven and potential resoure base represents

interesting options to inrease gas and ondensate

prodution, both or eport and domesti use. Options

or urther development o indigenous markets or gas

should be urther investigated.

Several matters inluding issues regarding gas

metering, health, saety and environment, tehnial

standards and pipeline speiations, regulations and

thirty party aess, taris, permits, authorizations and

onsents were analyzed and disussed. The Gas

commission reommended that the new gas regula-

tory body o SA and INP ooperate on those matters.

INP has also partiipated in the ommission or the

laim o the Etension o the continental Shel and has

ontributed in unding training, in Kenya, o tehnial

sta involved in this ommission.

INP is also ooperating with Petroleum Ageny o South

Aria (PASA) regarding the etension o the ontinental

shel. There have been meetings between INP, PASA and

the Institute or Maritime and Border Aairs (IMAF) with

a view to strengthen mutual ooperation on data e-

hange and possible submission o the etension o the

ontinental shel laim. Apart rom meetings, tehnialsta rom INP, IMAF and Empresa Naional de Hidro-

arbonetos (ENH) have been involved in data gathering

in preparation o the desktop studies. The above

mentioned team has also arried out a reonnaissane

eld survey to gather data as basis or the digital base

line o the Mozambique oast.

Guidelines and evaluation riterias used or the

Liensing round held on Rovuma Basin in 2005/2006

were improved and applied to omply with tehnial

epetation and international praties.

A new blok division has been introdued to omplywith the Regulation o Petroleum Operations.


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MONITORING cONTROL

INP has monitored through its eploration division

the eploration ativities perormed by DNO,

Petronas, Norsk Hydro and Sasol in Inhaminga,

Zambeze oshore, Areas 2 & 5 and Pande/Temane

eploration area respetively.

The National Institute perormed early 2006 a

Metering audit o the Pande/Temane Natural GasVenture inluding the metering system o Ressano

Garia-Matola to seure and ontrol prodution

and gas eport ativities. As a result o the audit

reommendations, Sasol is now on a monthly basis

sending volume mass-balaning reports to INP. The

aepted level o variane is still disussed with Sasol.

NPD is assisting INP in these matters.

INP was part o the environmental and HSE audit

onduted in August 2006 at the central Proessing

Failities jointly with the Ministries o Environment,

Health, Labor and ARA-Sul.

During November 2006 INP onduted an Emergeny

and Preparedness Planning Seminar o the Matola Gas

Pipeline aimed to veriy the plans and proedures that

the ompany has or an emergeny situation at densely

populated areas like Matola. MGc, Sasol Gas and down

stream ustomers like Mozal, Parmalat and others

were pleased to disuss saety and emergeny matters

regarding gas transportation and supply/deliveries.

The Petroleum Saety Authority Norway is assisting

on H&S issues.

Tehnial meetings were onduted with the Ministry

o Finane, ENH and Sasol regarding ta, royalty gas

and reporting issues. Prodution data was provided

by INP to the Mozambique central Bank and the

Ministry o Energy.

INP has evaluated the Development Plan presented

by Petroline, or onstrution o a uel pipeline rom

Matola to Nelspruit in South Aria.

To build up apaity, INP has trained the newly

reruited engineers in regulatory, and environmental

matters. A training programme was onduted byNPD and PSA in Stavanger, Norway.

ExPLORATION PROMOTION

INP has produed dierent promotional material,

posters and cDs regarding the Petroleum potential

o Mozambique or the northern part o Mozambique

Basin, Bzi gas disovery as well as or the Southern

part o Mozambique Basin.

INP also took part in promotional ampaigns at major

onerenes, to attrat eploration ompanies toMozambique, respetively at 11th Arian oil and gas,

trade and nane onerene in Algeria, the AAPG in

Houston (USA) and Sidney (Australia), the Aria Up-

stream in cape Town (RSA), Natural gas in developing

ountries (Qatar), 21st Arian Geologial olloquium

in Maputo (Mozambique), and at Etrative Industry

Transpareny Initiative onerene held in Oslo

(Norway).

The promotional material is also made available atthe INP Web page.

In August 2006 a mini liensing round was launhed

involving two shortlisted ompanies. Four bids dou-

ments were reeived as a result o this bidding round.

A Bids evaluation ommittee was onstituted by

tehnial sta rom INP, NPD, Eduardo Mondlane

University (UEM) and PSA. They evaluated the bids

without qualiying any o the bidding ompanies main-

ly due to their lak o adequate oshore eperiene.

NEGOTIATIONS

As a result o the biding round launhed in July last

year, or areas in the Rovuma Basin, INP is urrently

nalizing negotiations o Eploration and Prodution

conession contrats with the nal two winners o the

bidding round, namely Artumas or area 1 and Petronas

or areas 3 and 6.

Apart rom that, INP has signed Oil and Gas Eploration

Prodution conessions with British Ameria Natural

Gas and Anadarko Energy International, both USA

ompanies, and with ENI rom Italy, or the onession

o the Soala Bay, M-10 and Zambeze onshore, Rovuma

Basin area 1 and 4 respetively.

INP is also nalizing negotiations with Sasol or the

epansion o the cPF and the main pipeline. Plan or

Development and Operations (PDOs) will be submitted

to INP or evaluation early 2007 and epeted

epansion will be nalized in 2009.

Simonsen Law has been ontrated or legal advie

as regards the negotiations and NPD has rendered

support in assessing the appliations.

RESOURcE ASSESSMENTS

Under the resoure assessment task, INP has trained

3 geologists in Basin evaluation in Brazil.

INP arried out the evaluation o Petroleum potential

o the Southern Mozambique Basin below parallel

22 south and generated a number o leads whih

were ompiled and introdued into the Geographi

Inormation System.

DATA cENTRE

The Data centre has opied seismi data to ompaniesinvolved on the Rovuma Basin bidding round namely

Petrobras, Petronas, Hydro, Rokover, LNG, Global, Es-


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sar, ENI, Artumas, and British Gas as well as Mozambique

Basin data to the British ompany Petrolimpopo.

The Data centre has also arried out the quality

ontrol o the ore storage database and integrated

this inormation in an eel database.

Relevant reports on Southern Mozambique Basin were

sanned and integrated in an eisting database.

The data entre has nalized a drat regulation and

guidelines or internal use o data in reports at the data

entre as well as standards and ormats o data to be

submitted to INP rom oil ompanies.

In order to maintain the Resoure Assessment operations

at INP, the data entre has renewed lienses or the Geo-

graphi seismi interpretation sotware and has aquired

a liense or the SMT sotware used in the evaluation o

the Petroleum potential o the Southern Mozambique

basin.

INSTITUTIONAL DEVELOPMENT

During 2006 INP put speial ous on training its sta.

The Following ourses took plae:

Basin analysis ourse has been onduted or

3 geologists o the eploration division. For all the

Eploration Division sta an on the job training o

the evaluation o the Petroleum Potential o the

Southern Mozambique Basin was arried out.

One tehnial sta partiipated at a ourse, arried

out in Kenya, on the etension o the ontinental shel in

order to take part in a tehnial team dealing with this

matter.

A ourse in loading o Seismi data was also arried out in

preparation o the starting o the evaluation o the Petro-

leum Potential o the Southern Mozambique Basin.

Training on auditing and Environmental Impat

Assessment evaluation took plae during November 2006

or the Projets and development division sta.

Two new engineers were hired and submitted to

training in NPD/PSA in regulatory praties, auditing and

evaluation o EIA proesses.

Plans 2007Important ativities planned:

Further minor improvement o regulatoryramework, main ous on environmental

regulations. Legal training o INP and

assoiated institutions.

Follow up the work in the bilateral Gas Tradecommission.

Partiipation in the Etension o theontinental shel projet.

Follow up o Sasol plans or Pande/Temaneondensate rationation, transport and sales.

Assess options or urther gas market developmentand optimalisation o gas inrastruture.

Provide poliy assistane to MIREM. Follow up o Sasol plans or epansion o Pande/

Temane proessing and transport system based

on inreased reserves.

continued training and work on resoureassessment, development o the GIS system

and resoure inventory system.

Plan urther promotion. Follow up seismi data olletion and

possible oshore drilling (Zambezi).

Perorm metering audits and implementtraining in suh auditing.

Improve administration o royalty payments inash or in kind on gas/ondensate.

HE&S audit on the Pande Temane Gas Systemand on oshore drilling (optional ativity).

Provide inormation regarding the interationbetween oil, shing, tourism and

environmental issues. Provide assistane to MIKOA. Seure analogue data plan ore storage. Maintain high IT servies ooperate with TPDc. Improve aounting and budgeting, doument

handling, inormation servies and library servies.

Undertake training and organisational development.

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Photo: Jan Stenlkk

Norwegian Oil for development in Mozambique1

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