John Kelly Authentic Jersey NEWS – Mozambique Consulate

NEWS

Mozambique will eventually be one of the 10 largest producers of liquefied natural gas in the world

Mozambique is expected to become one of the world’s 10 largest producers of liquefied natural gas (LNG) in the next few years alongside Nigeria and Algeria in Africa, according to an analysis released on Tuesday by GlobalData.

“Within a few years, about 30 million tonnes per year will be extracted, due to existing deposits in the Rovuma basin, where 125 trillion cubic feet of natural gas have already been discovered,” it said.

The analysis, which is a summary of what has been written on the subject, stresses that stakeholders in the two consortia of Area 1 and Area 4 blocks will soon announce final investment decisions, with capital expenditures estimated at US$40 billion.

The natural gas deposits already discovered in the Rovuma bay consist of 75 trillion cubic feet in the Area 1 block, led by US group Anadarko Petroleum, recently purchased by US group Chevron, and 50 trillion cubic feet in the Area 4 block operated by ExxonMobil and Italy’s ENI.

Cao Chai, an oil and gas analyst, said in the document that the break-even of projects in Mozambique, estimated at US$4 to US$5 per thousand cubic feet, is very competitive when compared to prices in Japan’s spot market of US$9.24 per thousand cubic feet, due to a much lower capital cost of similar projects in other parts of the world. (Macauhub)

Supporting Office to the Permanent Secretariat of Forum Macau may become a Services Directorate

The Macau government is considering a proposal to transform the Supporting Office to the Permanent Secretariat of Forum Macau into a Services Directorate, Teresa Mok, the Office’s coordinator, said on Tuesday.

The level of demand in the work to develop Macau as a platform for services for trade cooperation between China and Portuguese-speaking countries and the prediction that most of the projects to be carried out will be long-term.

The proposal is being assessed by the Office of the Secretary for Administration and Justice, said Mok, quoted by daily newspaper Tribuna de Macau.

Mok said that the potential change was intended to reshape the project team and build an efficient permanent coordination and implementation mechanism that would meet the objective of developing the platform between China and the Portuguese-speaking countries, along with the development of Macau. (Macauhub)

Cyclone Idai drives Mozambique’s economic growth to negative ground in 2019, EIU says

The damage caused in Mozambique by cyclone Idai is expected to result in an economic contraction for the country of 2.0% this year, according to the latest forecasts from the Economist Intelligence Unit (EIU).

By 2020, the Mozambican economy is expected to return to growth, with a forecast of 3.0%, with the EIU forecasting an average growth rate of 5.4% in the period between 2020 and 2022, with a maximum of 7.5% in the last year of the period under analysis.

The document also said that the gas industry is expected to become one of the main drivers of the development of the country and recalls that this year the final investment decisions are due to be made for the projects of Area 1 and Area 4 blocks led by the groups Anadarko Petroleum and ExxonMobil/ENI.

However, in view of the fact that there is currently an over-supply in the world market for natural gas, large investments in land-based projects are not expected this year.

The expected economic growth rate for 2023, of 7.5%, is the result of the expected start this year of exploration of the gas deposits in the Coral Sul field in the Area 4 block.

Cyclone Idai has also driven price increases due to the destruction of agricultural units, with the inflation rate increasing to 8.1% this year and to 8.4% in 2020 before falling to rates of between 4.6% and 5.7% in the last three years of the period under analysis.

Gross fixed capital formation, or investment, will grow at a rate of 8.2% this year, after contracting 12.5% in 2018, and by 2020 to start growing by double-digits with 55.0% , which will be followed by rates of 45%, 35% and 30% in the years from 2021 to 2023, according to EIU forecasts.

The Mozambican currency, the Metical, is expected to continue to depreciate in 2019, also due to Cyclone Idai, which has exacerbated factors such as inflation, a slowdown in exports and a current account deficit, with EIU analysts expecting a decline in exports of 1.7% this year and 1.2% in 2020 and an increase in imports, with growth rates of 7.3% and 11.8% in 2019/2020. (Macauhub)

Trade between China and Portuguese-speaking countries up 15.61% in January/February 2019

The value of trade between China and the Portuguese-speaking countries reached US$23.583 billion in January/February 2019, an increase of 15.61% year-on-year, according to official Chinese figures released by Forum Macau.

In the first two months of the year, China exported goods worth US$6.079 billion, a year-on-year fall of 7.09% for the eight Portuguese-speaking countries, and imported goods worth US$17.504 billion (+26.32%).

Trade with Brazil, China’s main global trading partner in world terms, reached US$17.354 billion (+19.75%), with China exporting goods worth US$4.836 billion (-9.16%), and importing goods worth US$12.518 billion (+36.54%).

Angola ranks second in terms of value with two-way trade of US$4.752 billion (+2.89%), with Chinese companies exporting products worth US$266 million (-31.23%), and importing goods worth US$4.486 billion (+6.02%).

Portugal is in third place, far behind the top two countries, with trade worth US$150 million (+7.74%), with China exporting products worth US$641 million (+9.41%) and importing products worth US$358 million (+4.88%).

China’s trade with Mozambique reached US$442 million (+31.68%), with Chinese companies exporting goods worth US$304 million (+38.07%) to the country and importing products worth US$137 million (+19.49%).

China’s trade with the other Portuguese-speaking countries – Cabo Verde, Guinea-Bissau, São Tomé and Príncipe and Timor-Leste – amounted to US$34.1 million. (Macauhub)

Sweco provides consulting services to the Cahora Bassa hydroelectric plant in Mozambique

Swedish company Sweco has signed a US$5.2 million contract related to the project to modernise the Cahora Bassa hydroelectric plant in Mozambique, according to a statement released on Friday by the consultancy.

Under the contract, Sweco will provide consulting services and monitor and verify the installation of new equipment in the dam, which is the largest in Mozambique and one of the largest in Africa.

The five turbines of the project require in-depth work, and Sweco has been contracted to evaluate the work required, draw up technical specifications for the necessary equipment and to provide technical support in the selection of contractors, along with monitoring and verification of the execution of the work.

This project for the modernisation of the hydroelectric facility is expected to be completed in 2025, with Brazilian company Intertechne Consultores partnering with Sweco for some parts of this project.

The Cahora Bassa Hydroelectric Power Plant (HCB) is located on the Zambezi River near the city of Tete. It was built in the 1970s and has an installed capacity of 2,075 megawatts and production of 18,000 gigawatts per year.

The chairman of HCB, Pedro Couto, said in September 2018 that a 10-year investment plan, in the amount of 500 million euros, called Capex Vital, was being implemented to recover and modernise the company’s power production system. (Macauhub)

Chevron Corporation buys Anadarko Petroleum

The Chevron Corporation group has reached an agreement to buy all of the shares representing the capital stock of the Anadarko Petroleum Corporation group, both of the United States, according to a statement issued to the market.

The Anadarko Petroleum group is an operator of a natural gas project in Mozambique and in a statement dated 5 March said that the final investment decision of the Rovuma Area 1 natural gas project is expected to take place in the first half of this year.

The deal, which values the Anadarko Petroleum group at US$33 billion or US$65 per share, will mean that each shareholder will receive 0.389 Chevron shares and US$16.25 in cash for each Anadarko share held.

Once the deal is completed, the Chevron group will have issued 200 million new shares, paid an estimated US$8 billion in cash and taken on a debt of US$15 billion.

The Chevron group also said it intends to sell assets worth US$15 billion to US$20 billion between 2020 and 2022, which will be used to reduce liabilities and deliver an additional dividend to shareholders.

The Area 1 block is operated by Anadarko Mozambique Area 1, Ltd, a wholly-owned subsidiary of the Anadarko Petroleum group, with a 26.5% stake, ENH Rovuma Area One, a subsidiary of state-owned Empresa Nacional de Hidrocarbonetos, with 15%, Mitsui E&P Mozambique Area1 Ltd(20%), ONGC Videsh Ltd. ( 10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique BV (10%), and PTTEP Mozambique Area 1 Limited (8.5%). (Macauhub)

Cyclone Idai reduces the growth rate of Mozambique’s economy in 2019

One of the consequences of cyclone Idai hitting Mozambique is expected to be a drop in the rate of economic growth in 2019, which will range between 2.8% and 1.1%, the Economy and Finance minister said in Washington.

Adriano Maleiane, who travelled to the United States capital to attend the Spring meetings of the World Bank and the International Monetary Fund, told Portuguese news agency, Lusa, that the forecast for economic growth entered into the General State Budget for 2019 was 3.8%.

“We estimate a loss of two percentage points compared with what we had planned for 2019,” said the Economy and Finance minister at the World Bank headquarters at the end of a roundtable discussion on cyclone Idai, which included representatives from 30 countries.

The minister added that the Mozambican government expects a rise in the rate of inflation – which at the end of 2018 stood at 3.8% – by about one digit, due to the needs created by the cyclone.

Cyclone Idai destroyed some 800,000 hectares of agricultural fields, with agriculture accounting for 23% of the country’s gross domestic product.

This damage is also compounded by the damage affecting circulation, transportation and communication systems, the minister added.

The International Monetary Fund (IMF) has yet to update the forecast made in October 2018 for the growth of Mozambique’s economy this year, which remains at 4.0%. (Macauhub)

Mozambique’s national postal company wants to sell assets to be able to compete with private companies

Mozambican state-owned postal company Correios de Moçambique plans to sell a portion of its real estate assets to reduce the number of workers from 620 to 326 nationwide, announced the chairman of the company’s Board of Directors.

Valdemar Jessen said that the public company needs to raise an amount in Meticais equivalent to about US$2.3 million to reduce staff through early retirement and termination of contracts.

In addition to the sale of five properties, the chairman also mentioned the possibility of selling 50% of the shares representing the share capital of the company, and no objection to this project was expected, “as postal services are no longer a state monopoly.”

He added that the company’s employees, to which the company owes more than 50 million meticals, have a high average age and a low level of schooling, and more than 73% of revenue is taken up with remuneration, “a percentage that exceeds the maximum allowed by the law in force.”

Cited by the AIM news agency, Jessen also said that the decision to sell assets had already been approved by the government, which will improve the company’s financial situation, with the added benefit that this sale will reduce the maintenance costs of the company’s properties.

The board of Correios de Moçambique also wants to of reducing costs to a sustainable and commercially appropriate level in order to compete on an equal footing with the approximately 40 private companies operating in the same area. (Macauhub)

NEWS

Mozambique is expected to become one of the world’s 10 largest producers of liquefied natural gas (LNG) in the next few years alongside Nigeria and Algeria in Africa, according to an analysis released on Tuesday by GlobalData.

“Within a few years, about 30 million tonnes per year will be extracted, due to existing deposits in the Rovuma basin, where 125 trillion cubic feet of natural gas have already been discovered,” it said.

The analysis, which is a summary of what has been written on the subject, stresses that stakeholders in the two consortia of Area 1 and Area 4 blocks will soon announce final investment decisions, with capital expenditures estimated at US$40 billion.

The natural gas deposits already discovered in the Rovuma bay consist of 75 trillion cubic feet in the Area 1 block, led by US group Anadarko Petroleum, recently purchased by US group Chevron, and 50 trillion cubic feet in the Area 4 block operated by ExxonMobil and Italy’s ENI.

Cao Chai, an oil and gas analyst, said in the document that the break-even of projects in Mozambique, estimated at US$4 to US$5 per thousand cubic feet, is very competitive when compared to prices in Japan’s spot market of US$9.24 per thousand cubic feet, due to a much lower capital cost of similar projects in other parts of the world. (Macauhub)

The Macau government is considering a proposal to transform the Supporting Office to the Permanent Secretariat of Forum Macau into a Services Directorate, Teresa Mok, the Office’s coordinator, said on Tuesday.

The level of demand in the work to develop Macau as a platform for services for trade cooperation between China and Portuguese-speaking countries and the prediction that most of the projects to be carried out will be long-term.

The proposal is being assessed by the Office of the Secretary for Administration and Justice, said Mok, quoted by daily newspaper Tribuna de Macau.

Mok said that the potential change was intended to reshape the project team and build an efficient permanent coordination and implementation mechanism that would meet the objective of developing the platform between China and the Portuguese-speaking countries, along with the development of Macau. (Macauhub)

The damage caused in Mozambique by cyclone Idai is expected to result in an economic contraction for the country of 2.0% this year, according to the latest forecasts from the Economist Intelligence Unit (EIU).

By 2020, the Mozambican economy is expected to return to growth, with a forecast of 3.0%, with the EIU forecasting an average growth rate of 5.4% in the period between 2020 and 2022, with a maximum of 7.5% in the last year of the period under analysis.

The document also said that the gas industry is expected to become one of the main drivers of the development of the country and recalls that this year the final investment decisions are due to be made for the projects of Area 1 and Area 4 blocks led by the groups Anadarko Petroleum and ExxonMobil/ENI.

However, in view of the fact that there is currently an over-supply in the world market for natural gas, large investments in land-based projects are not expected this year.

The expected economic growth rate for 2023, of 7.5%, is the result of the expected start this year of exploration of the gas deposits in the Coral Sul field in the Area 4 block.

Cyclone Idai has also driven price increases due to the destruction of agricultural units, with the inflation rate increasing to 8.1% this year and to 8.4% in 2020 before falling to rates of between 4.6% and 5.7% in the last three years of the period under analysis.

Gross fixed capital formation, or investment, will grow at a rate of 8.2% this year, after contracting 12.5% in 2018, and by 2020 to start growing by double-digits with 55.0% , which will be followed by rates of 45%, 35% and 30% in the years from 2021 to 2023, according to EIU forecasts.

The Mozambican currency, the Metical, is expected to continue to depreciate in 2019, also due to Cyclone Idai, which has exacerbated factors such as inflation, a slowdown in exports and a current account deficit, with EIU analysts expecting a decline in exports of 1.7% this year and 1.2% in 2020 and an increase in imports, with growth rates of 7.3% and 11.8% in 2019/2020. (Macauhub)

The value of trade between China and the Portuguese-speaking countries reached US$23.583 billion in January/February 2019, an increase of 15.61% year-on-year, according to official Chinese figures released by Forum Macau.

In the first two months of the year, China exported goods worth US$6.079 billion, a year-on-year fall of 7.09% for the eight Portuguese-speaking countries, and imported goods worth US$17.504 billion (+26.32%).

Trade with Brazil, China’s main global trading partner in world terms, reached US$17.354 billion (+19.75%), with China exporting goods worth US$4.836 billion (-9.16%), and importing goods worth US$12.518 billion (+36.54%).

Angola ranks second in terms of value with two-way trade of US$4.752 billion (+2.89%), with Chinese companies exporting products worth US$266 million (-31.23%), and importing goods worth US$4.486 billion (+6.02%).

Portugal is in third place, far behind the top two countries, with trade worth US$150 million (+7.74%), with China exporting products worth US$641 million (+9.41%) and importing products worth US$358 million (+4.88%).

China’s trade with Mozambique reached US$442 million (+31.68%), with Chinese companies exporting goods worth US$304 million (+38.07%) to the country and importing products worth US$137 million (+19.49%).

China’s trade with the other Portuguese-speaking countries – Cabo Verde, Guinea-Bissau, São Tomé and Príncipe and Timor-Leste – amounted to US$34.1 million. (Macauhub)

Swedish company Sweco has signed a US$5.2 million contract related to the project to modernise the Cahora Bassa hydroelectric plant in Mozambique, according to a statement released on Friday by the consultancy.

Under the contract, Sweco will provide consulting services and monitor and verify the installation of new equipment in the dam, which is the largest in Mozambique and one of the largest in Africa.

The five turbines of the project require in-depth work, and Sweco has been contracted to evaluate the work required, draw up technical specifications for the necessary equipment and to provide technical support in the selection of contractors, along with monitoring and verification of the execution of the work.

This project for the modernisation of the hydroelectric facility is expected to be completed in 2025, with Brazilian company Intertechne Consultores partnering with Sweco for some parts of this project.

The Cahora Bassa Hydroelectric Power Plant (HCB) is located on the Zambezi River near the city of Tete. It was built in the 1970s and has an installed capacity of 2,075 megawatts and production of 18,000 gigawatts per year.

The chairman of HCB, Pedro Couto, said in September 2018 that a 10-year investment plan, in the amount of 500 million euros, called Capex Vital, was being implemented to recover and modernise the company’s power production system. (Macauhub)

The Chevron Corporation group has reached an agreement to buy all of the shares representing the capital stock of the Anadarko Petroleum Corporation group, both of the United States, according to a statement issued to the market.

The Anadarko Petroleum group is an operator of a natural gas project in Mozambique and in a statement dated 5 March said that the final investment decision of the Rovuma Area 1 natural gas project is expected to take place in the first half of this year.

The deal, which values the Anadarko Petroleum group at US$33 billion or US$65 per share, will mean that each shareholder will receive 0.389 Chevron shares and US$16.25 in cash for each Anadarko share held.

Once the deal is completed, the Chevron group will have issued 200 million new shares, paid an estimated US$8 billion in cash and taken on a debt of US$15 billion.

The Chevron group also said it intends to sell assets worth US$15 billion to US$20 billion between 2020 and 2022, which will be used to reduce liabilities and deliver an additional dividend to shareholders.

The Area 1 block is operated by Anadarko Mozambique Area 1, Ltd, a wholly-owned subsidiary of the Anadarko Petroleum group, with a 26.5% stake, ENH Rovuma Area One, a subsidiary of state-owned Empresa Nacional de Hidrocarbonetos, with 15%, Mitsui E&P Mozambique Area1 Ltd(20%), ONGC Videsh Ltd. ( 10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique BV (10%), and PTTEP Mozambique Area 1 Limited (8.5%). (Macauhub)

One of the consequences of cyclone Idai hitting Mozambique is expected to be a drop in the rate of economic growth in 2019, which will range between 2.8% and 1.1%, the Economy and Finance minister said in Washington.

Adriano Maleiane, who travelled to the United States capital to attend the Spring meetings of the World Bank and the International Monetary Fund, told Portuguese news agency, Lusa, that the forecast for economic growth entered into the General State Budget for 2019 was 3.8%.

“We estimate a loss of two percentage points compared with what we had planned for 2019,” said the Economy and Finance minister at the World Bank headquarters at the end of a roundtable discussion on cyclone Idai, which included representatives from 30 countries.

The minister added that the Mozambican government expects a rise in the rate of inflation – which at the end of 2018 stood at 3.8% – by about one digit, due to the needs created by the cyclone.

Cyclone Idai destroyed some 800,000 hectares of agricultural fields, with agriculture accounting for 23% of the country’s gross domestic product.

This damage is also compounded by the damage affecting circulation, transportation and communication systems, the minister added.

The International Monetary Fund (IMF) has yet to update the forecast made in October 2018 for the growth of Mozambique’s economy this year, which remains at 4.0%. (Macauhub)

Mozambican state-owned postal company Correios de Moçambique plans to sell a portion of its real estate assets to reduce the number of workers from 620 to 326 nationwide, announced the chairman of the company’s Board of Directors.

Valdemar Jessen said that the public company needs to raise an amount in Meticais equivalent to about US$2.3 million to reduce staff through early retirement and termination of contracts.

In addition to the sale of five properties, the chairman also mentioned the possibility of selling 50% of the shares representing the share capital of the company, and no objection to this project was expected, “as postal services are no longer a state monopoly.”

He added that the company’s employees, to which the company owes more than 50 million meticals, have a high average age and a low level of schooling, and more than 73% of revenue is taken up with remuneration, “a percentage that exceeds the maximum allowed by the law in force.”

Cited by the AIM news agency, Jessen also said that the decision to sell assets had already been approved by the government, which will improve the company’s financial situation, with the added benefit that this sale will reduce the maintenance costs of the company’s properties.

The board of Correios de Moçambique also wants to of reducing costs to a sustainable and commercially appropriate level in order to compete on an equal footing with the approximately 40 private companies operating in the same area. (Macauhub)

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