GlobalData expects that an average capital expenditure (capex) of $3bn per year will be spent on eight oil and gas fields in Mozambique between 2018 and 2020. Capital expenditure on Mozambique’s oil and gas projects will add up to $9.1bn over the three-year period to the end of 2020.
Ultra-deepwater projects will be responsible for over 65% of upstream capex in Mozambique, or $6.2bn by 2020. Deepwater projects will account for 25% of upstream capex with $2.3bn by 2020, while onshore projects will require $600m in capex over the period.
GlobalData expects that Eni and Exxon Mobil will spend the most in Mozambique, each investing $1.4bn into the country’s upstream projects by 2020. China National Petroleum Corporation will follow with $1.1bn investment into its Mozambique projects between 2018 and 2020.
Top ten companies by upstream capex in Mozambique, 2018 – 2020
Source: GlobalData Upstream Analytics
Coral South Project, a planned ultra-deepwater conventional gas field, will lead capital investment with $4.3bn to be spent between 2018 and 2020. Eni East Africa is the operator for the field. Golfinho-Atum Complex, a deepwater conventional gas field in the Rovuma Basin, follows with a capex of $2.3bn. Anadarko Mozambique Area 1, Limitada is its operator. Gas from both projects will be marketed as liquefied natural gas.
GlobalData reports the average remaining capex per barrel of oil equivalent (capex/boe) for Mozambique projects at $6. Deepwater projects have the highest remaining capex/boe at $6.80, followed by onshore and ultra–deepwater projects with $5.90 and $5.80 respectively.