Beruflich Dokumente
Kultur Dokumente
Nr. 11
Newsletter
Pub.
Dear Readers! the early Atcentury, thestages of the XXI communication emerges as 4th power in the life of societies and we feel participating in this important evolution. The new Information and Communication Technologies are today a fundamental tool for services and product management specially for big brands. In this 11th of the Newsletter, we talk about the discoveries of natural gas in the offshore Mozambique Rovuma Basin in an article that illustrates the adventures of natural gas exploration in deep waters. Then, we touch on the success of China in the global energy scene, oil industry in particular, with the impressive Petrochina, a young Chinese company, with little more than 13 years in the market, but which already exceeded the giant U.S. Exxon Mobil to become the worlds largest producer of oil. We also revisit HCB dossier, talking on the management reversal to Mozambican State, which is the materialization of the dream of the President Armando Guebuza, when years ago he said loudly: Cahora Bassa is ours. The Media Project Energy and Extractive Industry Mozambique is an initiative of the Mozambican company, STATUS Consultores de Comunicao Lda, which aims at innovative the way to share ideas and knowledge in the Energy Sector, as well as provide consultancy services and advice on strategic communication. We foster the principles of the right for information in full respect with responsible citizenship and aim to contribute to the economic and social development of Mozambique in a sustainable manner. To this end, we encourage our dear readers and potential partners to disclose this initiative to other stakeholders so that we can add to our audience of over 5 million readers nationally and internationally. Happy reading!
years, the gas exploration in deep waters has gained a greater focus and importance. This fact has been stimulated by the a greater global demand projected for the gas due to the raising consciousness of gas as a clean and greener energy source, as well as for being an energetic promise for the future. The advances in the offshore Cont. pag. 2
PUB.
Why Iran Believe they are Safe from effects of oil sanctions
PETRLEOS DE MOAMBIQUE
and more...
Pag. 6
News
consumption base (to prefer renewable sources) and the use of natural gas has a cleaner source which contributes to lessen greenhouse emissions. production technologies (multi-phase submarine systems) have allowed the development of production sites localized at about 100km off shore, in deep water seabed (more than 1000m deep). The trend is surely of a continued increase in liqueed natural gas (LNG) production, in response to the increase global energy demands, covering both domestic to industrial needs. The high prices of oil and gas has pushed the producing companies to search for gas in deep waters in sometimes harsh environmental conditions, executing projects that would not be viable 10 years ago. The environmental protection advocacy has also gain traction, intensied through a scientic studies and historical measurement databases showing that the emission of hydrocarbons generate greenhouse gas effect resulting in potentially serious impact on the world climate patterns. This is driving a change on the The main focus is moving from the traditional survey areas such as the Gulf of Mexico and the northern sea, towards the deep waters areas of occidental Africa, South America, the Barents sea and recently the Rovuma river basin in Mozambique. Still the exploration of gas in deep waters presents great technical and commercial challenges. Frequently the identied reserves sites are still economically unfeasible or requiring too much expenses and capital investments for production operations. Despite the constant research and development in the production technologies, such as the multi-phase techniques, there are still some obstacles.
NATURAL GAS
Mozambique: Anadarko completes planned appraisal drilling program in Rovuma Basin offshore areas
V Village, Mozambique recently selected Prosperic dade (Prosperity) as the d name for the discovery n area in the Offshore Area a 1 block. Prosperidade includes the Windjammer, c Barquentine, Lagosta B and Camarao sites as a well as the ve subsew quent appraisal wells in q the block. As previously t announce, Prosperidade a is estimated to hold rei coverable resources of c 17 to 30-plus trillion cubic feet of natural gas. f Our appraisal drilling program in the
A d k h Anadarko has announced that, with d th t ith the success of its Barquentine-4 appraisal well, the partnership has completed the drilling portion of its planned appraisal program in the discovery area offshore Mozambique. The Barquentine-4 well, located in Offshore Area 1 of the Rovuma Basin, encountered approx. 525 net feet (160 meters) of natural gas pay, and became the Anadarko partnerships ninth successful well in the complex. Additionally, the company announced that sixth- and seventh-grade students of Escola Unidade and Escola Primaria 16 de Junho in Palma
Prosperidade complex offshore Mozambique delivered outstanding results that provide signicant condence in the vast extent of this accumulation and will be key in achieving third-party reserve certication, as we advance the partnerships world-class LNG (liqueed natural gas) project toward FID (nal investment decision), Anadarko Sr. Vice President, Worldwide Exploration, Bob Daniels said. The selection of Prosperidade as the eld name is certainly appropriate, as it symbolizes the partnerships expectations for this area and the opportunities it represents for the people of Mozambique. Our next step is to mobilize the drillship to the northern section of our block to begin testing additional high-potential exploration prospects that may expand the resource even further and provide tieback opportunities for future LNG hub facilities. He added. The Barquentine-4 well is the northernmost well in the Prosperidade complex, approx. 19 miles (30 kms) north of the Lagosta discovery well located on the southern end. It is located in water depths of approx. 5,400 feet (1,650 meters). PUB.
News
MARKETS
OIL
PetroChina surpasses Exxon and becomes the biggest oil producer in the world
A fundamental change is occurring in the competition landscape amongst the top oil Companies operating in the market. A giant American company is behind a debutant Chinese company. Exxon Mobil is not the biggest producer negotiated in the world stock markets any more. For the rst time, the winning title goes to a 13 years old Chinese oil company named PetroChina, that was created by the Chinese government to guarantee more oil for the countrys growing economy. On 29th of March, PetroChina announced that it had produced 2,4 million of barrels of oil per day, last year, surpassing Exxon by 100 barrels. The Chinese company grew fast in the early few years, by being able to squeeze the oldest oil elds in China and allowing itself to executing less scrutinized investments than the occidental companies on acquisition of oil reserves in places such as Canada, Iraq and Qatar, motivated by the need to guarantee the biggest quantity of oil possible. The production of the Chinese company has increased 3,3% in 2011, while Exxon has decreased 5%. The Exxon production fell even behind the Rosneft from Russia. The rising of PetroChina distinguishes the fundamental difference about how the biggest companies of oil plan to provide oil to the world, once the new deposits have be-
come rare and more expensive to produce. The biggest oil companies are looking for new elds to replace the actual wells. PetroChina has a different mission. The Chinese government control 86% of its shares and China uses almost all oil the company produces. The Chinese appetite for fuel and other petro fuels is estimated to double between 2010 and 2035. We should move forward, commented the president of the Chinese company, Jiang Jiemin, source: Valor, Associated press.
News
ALTERNATIVE ENERGY
Brief
Sale of 7,5% of HCB: An open door for Portuguese companies in Mozambique
Pedro Passos Coelho, the Portuguese prime-minister and Armando Emilio Guebuza the head of state of Mozambique, signed in Maputo a document that ofcialises the sale of the 7,5% of the hydroelectric company Cahora Bassa. At the same time, the two countries have agreed the transference to Mozambique of the still remaining 7,5% held by Portugal, within 2 years maximum, which generated more business opportunities for the Portuguese companies. (Source: Jornal de Negcios)
MINING
grew 9.3 percent in 2011 and should grow 9.4 percent this year, according to ofcial gures. But the country is ghting against an acute shortage of dollars. Zimbabwe adopted the use of foreign currencies, primarily the U.S. dollar and South African rand in 2009, after its own currency was destroyed by hyperination, which reached 500 billion percent in December 2008. The foreign mining companies operating in the country have been pressured by the government to transfer most of their shares to local enterprises. Last week, Impala Platinum, the second largest producer of platinum in the world, bowed to pressure and said it would transfer 51 percent of its shares in its unit Zimplats to local investors. The worlds largest producers of platinum, Anglo American Platinum and Rio Tinto which manage diamond mines, are some of the multinationals operating in Zimbabwe. Source: Nelson Banya
An order was issued and they should bring all the money back to the country because the economy is dollarized now, added. The unity government of Zimbabwe has managed to stabilize the economy, which
e-MAIL: status@status.co.mz / status.energiamoz@status.co.mz Website: www.energiamocambique.co.mz Newsletter nr.11 - April, 24nd 2012
News
WORLD
increasing their interest in renewable energy, including solar energy, as potentials sectors for the economic development of their country. However, it is known that the high levels of these techcou nologies require economic trade-offs that have to be carefully nol considered. con The energy prices will always be volatile, which represents a challenge for a long term economic planning, afrmed Kenc neth net Rogoff, Economy professor in the Harvard University. The interesting question is to nd a formula to turn this instability less inte prejudicial for the economy, mentioned (OJE).
Mozambique: African Energy Resources sent successfully coal from Botswana to Matola terminal
The australian mining company African Energy Resources have sucessfully sent by rail a wagon with 25 tons of coal extracted in the Sese mine, in Botswana, to the coal terminal of Matola, in Mozambique, operated by South African group Grindrod, said the company listed on the Australian Stock Exchange. The test wagon was loaded with 25 tons of thermal coal in the Francistown station of Botswana Railways on the 3rd of April and sent via Bulawayo in southern Zimbabwe to Maputo, where it arrived on 7th April. In the statement, the African Energy Resources said that the success of this test showed that it is possible to transport coal to the east coast of Africa in order to be exported to markets in Asia / Pacic, mainly India and China. (source: Macahub)
are still complicated issues in a disturbed global economy. As an example, in the US, the gas and oil industry contributed for the injection of 37 thousand direct job posts in 2011, that generated the creation, during the same period, of 111 thousand indirect jobs. These almost 150 thousand job posts represent 9% of the total job posts created in 2011 in the U.S. According to Daniel Yergin, the president of CERA, the energy industry is the only one that respects its economic importance and has a potential to become a signicant catalyser for the creation of jobs and sustainable growth without harming the general performance of the sector. The Energy Industry is by nature, capital intensive, requiring for that high levels of investments. Simultaneously, it has equally the capacity of managing signicant contributions for the gross domestic product (GDP). We always suspected that the energy would play a crucial role in the economic recovery, claims Roberto Bocca, responsible for the area of energetic industries of the World Economy Forum. Meanwhile, we must confess that we were however surprise with the results on the report issued, which quanties and reveals the true magnitude of the multiplying effects added. In addition, the report examines the role of the prices of energy in the economy. Naturally the lower prices reduce the input costs of the majority of goods and services, which turn them more accessible. The short term models show for example that lower prices of natural gas will help the north American economy through various ways: 1.1% of increase in the GDP in 2013, one million additional jobs in 2014 and 3% increase in terms of industrial production in 2017. Many countries such as China, India and South Korea are
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e-M e-MAIL: status@status.co.mz / status.energiamoz@status.co.mz www.energiamocambique.co.mz Website: www.energ Newsletter nr.11 - April, 24 nd 2012
Why Iran Believe they B li th are Safe from effects of oil sanctions
fter initial outrage, bluster and bravado, Iran appears to have come to terms with impending Western sanctions on the countrys oil and nancial sector; to the point of saying they dont think it will have any meaningful impact at all. Iran deems Western politicians as lacking the courage to stick with the ban in the face of a further rally in oil prices; which will be inevitable, as they see it, if the West goes ahead with the ban. So are they right to be so sanguine? Will Irans Asian customers take up the slack in buying production that the country cannot sell elsewhere? Indeed, is a price rally an inevitable and ultimately crushing certainty if Irans oil is cut off from world markets? We think not. A dramatic rise in prices is likely only in the event of outright aggression, either from Israel striking Iranian nuclear enrichment plants and eliciting Iranian retaliation, or Iranian aggressive action in the straits of Hormuz (passageway to a sizeable chunk of global seaborne oil shipments). One benet of the six-month delay the West put on the ban has been giving the world time to adjust to a market with constrained Iranian supply. Reuters reporter Clyde Russell calculated that Chinas oil inventories may be growing by 670,000 barrels per day. Similarly, OPECs own monthly oil market report suggested Chinese stock building may be as high as 800,000 bpd, explaining why Chinese oil imports have been soaring while the economy has been slowing and all pointers are suggesting oil imports should slow, if not fall. A signicant part of the largest trade decit China has ever seen in January was due to a rising oil import bill; if China is indeed importing as much as 800,000 bpd for stock, one can understand Iran may be reading that as robust demand. Source: by Stuart Burns; OilPrice
LTA FA
C U R I O S I T i e s
THE DEFINITION OF NATURAL GAS Natural gas is composed of a mixture of hydrocarbons (methane, propane, ethane, butane and others gases in lesser proportion) found on the subsoil. The composition of natural gas can change depending of the eld factors where the gas is produced (onshore, offshore). Natural gas is a fossil fuel therefore and non- renewable energy. Forms of exploration Onshore exploration Its the type of bore/drill that occurs inland. The equipment utilized contains drills that rotate to tear the rock, bringing to the surface the extracted material obtained in the subsoil. When successful, these channels hit pockets of natural gas that then ows to the surface and are captured in the production facility for transformation and transport/distribution. For example the gas exploration named Panda by SASOL. Offshore exploration This type of exploration consists on the production and exploration of gas and oil in maritime seabed. For example the investigations held by Anakardo in the Rovuma Basin. PROVED RESERVES Proved reserves are reserves that, based in the geographic and engineering surveys, can be commercially viable, with a high level of certitude the classication includes factoring the applicable economic conditions, the operational methods available for the site(s) and the local law and regulations.
Pub. 7
Media Project Energy & Extractive Industries Mozambique awarded in New York
The mozambican company STATUS Consultores de Comunicao Ltd, under its Media Project Energy and Extractive Industry Mozambique has been awarded with the International Quality Summit Award in the category of gold, an event taking place on 27th and 28th of May this year in New York, organized by Business Initiative Directions (BID), a private organization that awards the prestigious World companies that distinguish themselves in providing services and products using new technologies of communications and information. It must be noted that the International Quality Summit award (IQS) is oered in recognition of companies and organizations in dierent countries around the world promoting their reputation and position by implementing and promoting quality culture. The award recognizes and encourages our company and our project for the quality of services and satisfaction of our clients, readers, partners and organizations.
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Analysis
The resulting risks from the exploration of gas in deep waters of the Rovuma basin
The deep waters of the Rovuma basin along the Mozambican coast area 1, are proving to be a bonanza for the north-American oil company, Anakardo petroleum. The area has gained a considerable attention on the oil and gas industry and others sectors, when the multinational announced the discovery of the Tubaro site last February. Meanwhile, in the midst of the consequent fuzz, some risks emerge that deserve attention, namely political, economic, environmental, social, scal and environmental.
Political risk: For a better understanding of the political risks associated with exploration in the deep waters of the Rovuma basin, two passages of the recent report published by the London based organization, the Economist Intelligent Unit (EIU) seem sufciently clear: The development of gas and other resources of hydrocarbons including oil, will have great implications for Mozambique, producing new substantial sources of revenue for the government and reducing the importance of external help and as a consequence, the capacity of external interest groups for pressuring the government. (Extracts of the EIU report on Mozambique). The scenario described above is extremely bothering. Not due to lack of patriotic sense or a desire of greater autonomy and political independence from the government towards the foreign countries. The point is that civil society in the country is still weak. Its advancement and progress remains a major challenge, depending heavily in the donors community long term commitment. This community, which includes the Programmatic Aid Partners, is the most active in pressing the Mozambican government for continued investment in ghting corruption, foster good governance practices and transparency in the conduct of State affairs. Even on this context of pressure, these efforts have yet to produce full results, as evidenced by the prevailing secrecy and non-disclosure of the details related to the mega-projects and still pending ratication of Mozambiques adherence to the Initiative for Transparency in the Extraction Industry (ITET). Some advocate that the Government improved autonomy and self-reliance may weaken the pressure groups effectiveness. How resilient the Government practices will be in this context? Will the elementary democracy be sustained? Are there any risks of setbacks such as in the case of Angola? Economic and Fiscal Risk: The same article from Economist Intelligent Unit aleven endangered, as rules may lessen the tax burdens - from individual tax to other smaller tax incidences - hoping in return, reduced scrutiny and pressures from civil society. This would further create dependency on gas and coal, and be an explosive combination, as the main tax contributors would surely gain unlimited power base and inuence, swinging back the future of the countries free strategic choices. Social and environmental risk: Society may suffer from the above risks, but it is also within a strong and healthy society that the same risks are mitigated! A robust and integrated society, participatory and inclusive, where woman are given voice and where representative groups of vulnerable segments are treated with dignity and advance out from basic poverty, is surely much better equipped to help avoid these risks and transform them into positive outcomes. Citing the distinguished Renaissance philosopher Niccolo Machiavelli the best fortress is the people themselves, their love and loyalty towards the State. The reverse is the social instability, poverty, social injustice, corruption, weak institutions, insecurity and other social issues. Hence, the challenge now is to promote the social integration of vulnerable groups, the marginalized, especially those who represent a huge potential for conict as the former combatants (without discrimination), promote the empowerment and capacity building of communities, especially women and strengthening the private sector, especially small businesses initiatives. This may prevent acts of sabotage and other characteristic manifestations, popular uprisings, internal armed conicts, political fragmentation, thus creating a climate of ownership and acceptance of the megaprojects by Mozambican People instead of the sharp hostility as we have been witnessing recently. The Environmental Risks are inherent to the production operations in deep waters. There are risks such as leaks, spill or re in the gas platforms and gas transport because of its highly ammable nature.
lows us to look at the economic and scal risks and their interdependency. The issue is the potential for Mozambiques economy to become too much dependent on gas and coal and polarize as in the case of Zambia with revenues from copper, Russia on gas and oil, Saudi Arabia on oil, Angola on oil and diamantes, to name a few. In these countries more than 80% of Gross Domestic Product (GDP) comes from the mining industry. A great dependence of the state taxes revenues solely on gas and coal, may adversely affect the countrys development and the economy diversication. The various crises experienced in the world have shown us that relying excessively on tax revenue from oil is harmful to economic and social development. The future of the Tax Authority may be
The biweekly Newsletter Energy & Extractive Industry is one of several channels of the Media Project Energy & Extractive Industry Mozambique available in electronic format
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and print quarterly Magazine Energy & Extractive Industry, we also have a television program with the same name on Public Television of Mozambique every Wednesdays. The Energy & Extractive Industry Newsletter brings to you the major events that can result in huge impact in the energy sector and mining industry both at nationally, regional and internationally. As the Media Project Energy & Extractive Industry Mozambique This Newsletter is the rst and the only one specialized in Energy & Extractive Industry, which makes of it an ideal channel and unique to companies of the sector interested in advertising their products, services and brands in this channel.