investment opportunities in oil and gas - mozambique · 16 pemba oil & gas service centre phase...

INVESTMENT OPPORTUNITIES IN OIL AND GAS - MOZAMBIQUE

EMPRESA NACIONAL DE HIDROCARBONETOS, EP

ROME, 09 JULY 2019

PART I – ENH AND THE SECTOR

PART II – OPPORTUNITIES FROM ON-SHORE PLAYS.

PART III – ROVUMA BASIN PROJECTS OPPORTUNITIES.

PART IV – BUILDING THE ECOSYSTEM.

PART V – ENH EQUITY FUNDING OPPORTUNITY.

PART VI – LONG-TERM VISION SUMMARY

TABLE OF CONTENTS

PART I – ENH AND THE SECTOR

INP

ENHIGEPE

EXPLORATION & PRODUCTION

TRANSMISSION & DISTRIBUTION

SHIPPING & TRADINGINFRASTRUCTURES &

SERVICES

ENH INTO VALUE CHAIN … … …

2 THE SECTOR AND ENH

COM REPRESENTATIVE

DOM GAS AGGREGATOR

IOC PARTNER IN BLOCKS

VC PLAYER

A5 - A A5 – B Z5 – C

ENI 34% EXXON 60% EXXON 60%

SASOL 25% ROSNEFT 20% ROSNEFT 20%

ENH 5% ENH 20% ENH 20%

Z5 – D PT5 – C P5 - A

EXXON 60% SASOL 70% DELONEX 70%

ROSNEFT 20% ENH 30% INDIAN 20%

ENH 20% ENH 10%

Capex in exploration USD 700+m in the next 5 yrs.

Acquisition of 2D and 3D seismic data and drilling of at least 10 wells.

Vote of Confidence in Mozambique + Future Resources Probability

3 O&G BLOCKS

Rovuma Basin: Area 1, Area 4 – 180 TCF’s

Mozambique Basin: Buzi, Pande/Temane, Inhassoro and Mazenga

5th TENDER

PART II – CURRENT ON-SHORE PLAYS – PANDE, TEMANE AND INHASSORO, + BUZI

5 OPPORTUNITIES FOR SME’S – PT, INHASSORO

Power projects going on (33% of current supply) + distribution to other market segments (Maputo, Marracuene, Inhambane).

Condensates transport and storage. Household consumption and expansion in Vilankulos/Govuro. Supply of consumables.

PANDE & TEMANE

INHASSORO

Well drilling phase supplies (pipes and materials). Construction: pipeline and other facilities, light oil transportation and storage, other

evacuation options (terminal). CTT construction. LPG / value-chain business. Camps/ catering / supplies/ transport/ ...

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3 INVESTIMENTS (RE-FINANCE)

ENH EQUITY refinance. Financial partner in the short-term with potential into a strategic partner in the long-

term.

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Transports – Maputo / Buzi e Beira / Buzi. Consumables (fuel and others). Camps / catering / … MEDIVAC Services: custom clearance, insurance, …

EXPLORATION DRILLING

MEDIUM - TERM

All above with development drilling. Gas development: power generation, fertilizer, … “Sasol Complement in GSA”. Infrastruture Construction. Regional footing to neighbouring Zimbabwe (bankable projects)

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OPPORTUNITIES FOR SME’S – BUZI / MAZENGA

PART III – ROVUMA BASIN

MOZAMBIQUE LNG8

$50B+

30MTPA+

Fuels, Food, Water, Equipment, Transportation, General Accommodation.

Services: Clearing and Customs, Labour Force Recruitment and Training.

INVESTMENT OPPORTUNITY - AREA 1 9

POST- FID INVESTMENTS

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Completion works pertaining to Ressettlement Village. Camping AMA1, Camping for Consortium Contractors (Saipem to

update). Subsea Construction and Related Equipment. Logistics: JHB – Palma, Nacala – Palma, Pemba – Palma. FIRST MOVER: COMMON INFRASTRUCUTRES

SERVICES AND SUPPLIES – DURING CONSTRUCTION 5 YEARS

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INVESTMENT OPPORTUNITY - AREA 1 10

3 CORE BUSINESS IN THE VALUE CHAIN

ITT (August 2019) for LNG Shipping: construction and other activities.

Shipping Charter Agency. Supplies and other services.

11 INVESTMENT OPPORTUNITY - AREA 4

AREA 04 OFFSHORE DRILLING CAMPAIGN - FLNG1

2 AREA 04 ON-SHORE LNG PLANTS – 2020

Sub-Contracts from the EPCC Consortium (TBD). Camping (ENHL-BONNATTI) – sub-contracts. Logistics: JHB – Palma, Nacala – Palma, Pemba – Palma. MOF – Material Off-Loading Facility, Jetty and other infrastructures

– COMMON INFRASTRUCUTRES

Oil & Gas Service Centre (Pemba Logistic Base).

PART IV – BUILDING THE ECOSYSTEM

13 IN-COUNTRY GAS VALUE-ADDITION

400 MMSCF

AREA 1 AREA 4

500 MMSCF

900+ MMSCFD

$9B+

14 INVESTMENT OPPORTUNITY – LNG PROJECTS

TRAINING, RECRUITING AND SUPPORTING LOCAL CONTENT

FOOD SUPPLY, FISHING AND COMMUNITY DEVELOPMENT

TRADING AND LEISURE

HEALTH CARE

AIR TRANSPORTATION AND MEDEVAC

CARGO AND PEOPLE TRANSPORTATION

LNG RELATED DEVELOPMENT - I15

18.000 HA – GAS CITY IN PALMA

INDUSTRIAL DEVELOPMENT “CLUSTERS”

AGRICULTURE, FOOD SUPPLY

POWER AND WATER, SOCIAL INFRASTRUCTURES

RESIDENTIAL AREA

LEISURE INDUSTRY

PEMBA OIL & GAS SERVICE CENTRE16

PHASE 01 Water network, desalination plant, and

boreholes. Electrical and network at site. Safety and security, including ships

and port facility security. TUBES AND PIPES, CEMENT,

CHEMICALS AND DRILLING FLUIDS.

SUPPLY VESSELS AND TUG BOATSPHASE 02 Civil, Marine Works, Dredging. Machinery for Execution. Barging, Shipping, Clearing &

Forwarding, Cabotage. ICT.

• North – South Pipeline• Anchor Market: South Africa and the

Region.

Industrial Cluster Commercial Port Gas City

Development

O&GSC - PEMBA

ROVUMA MEDIUM TERM DEVELOPMENTS

PRIOR TO ROVUMA

• Regas Units For Power.• Pipelines, Storage and Transportation –

Nacala, Beira and Maputo

LNG – ANCHOR PROJECTMOF/JETTY/AIRPORT/CAMPS

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REGIONALFOOTING

REGIONALFOOTING

REGIONALFOOTING

LNG BUSINESS RELATED INFRASTRUCTURES

ROVUMA BASIN UNDERTAKINGS1

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PART V – FUNDING OPPORTUNITY


OWNERSHIP RESOURCES

BUSINESS MODEL

26.5%

20.0%

30.0%

8.5%

15.0%

75 TCF Export-oriented LNG integrated project with 02 on-shore trains in phase 01, 12MTPA (Anadarko 26.5%), premium-market, DES terms, looking into 9 MTPA SPA’s, FID expected in 2019 (APRIL 2019).

Hold Co

Borrower(UAE)

Seller(SING)

SPV’s created by the sponsors….

Senior Lenders(UAE)

LNG Buyers(UAE)

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LNG MARINE TERMINAL“LMT Co”

MATERIAL OFFLOADING FACILITY“MOF Co”

SHARED FACILITIES WITH AREA 04 ON 50/50 BASIS


#WGC2018FUELING THE FUTURE 7

Significant Marketing Progress

LNG DEMAND GROWTH 2015-2030

FUTUREGROWTH

156MTPA

Asia Pacific

MOZAMBIQUE

6MTPA

Middle East51MTPA

Europe

13MTPA

South America

Direct Routes to Global Markets

6.7 MTPA of ANNOUNCED DEALS

SPA NEGOTIATIONS UNDERWAY

KEY TERMS AGREED for TARGETED VOLUME > 8.5 MTPA

WORLD-CLASS BUYERS with

CAPTIVE DEMANDSource: WoodMac, 1Q 2018

DEMAND POTENTIAL

BUYER MTPA

EDF 1.20

PERTAMINA 1.00

SHELL 2.01

TOHOKU 0.28

BHARAT 1.00

CNOOC 1.45

CENTRICA/TOKYO GAS

2.60

Total Executed 9.54

JERA/CPC 2.00

BP 1.50

PTT 1.10


FISCAL TERMS AND CASH-FLOW WATERFALL

LNG SALES PROCEEDS

SELLER REVENUEACCOUNT MINUS

Charter PartySeller TaxesSeller Opex

Seller’s Offshore Op

Acc

PPT

MINUS

CONCESSIONAIRESOPEX

GOV PROFIT OIL

SENIOR DEBT OBLIGATIONS

MINUS

DSRA

REMAINING FUNDSTO SHAREHOLDERS IFCONDITIONS ARE SATISFIED

ENH REVENUE TO BE ALLOCATED TO ENH FUNDING REPAYMENT (20/80)


CAPEX AND FUNDING STRUCTURE (EST.)

Uses of Funds USDb Source USDb

CAPEX 17.8 CFO 1.8

FINANCING COSTS 4.6 EQUITY 7.3

DSRA 0.9 DEBT 14.4

OTHERS 0.2

TOTAL USES 23.5 TOTAL SOURCES 23.5

PART V – LT VISION WRAP-UP

24 LONG-TERM VISION & OPPORTUNITIES

LNG sales for power generation: industry, residential. Bunkering for ships. Transition into cleaner sources of energy, supply security and diversification.

LNG MOZAMBIQUE EXPORTS INTO THE REGION

FOREIGN DIRECT INVESTMENTS – VC POTENTIAL

Value-addition and industrialization: GTL, fertilizers and other petrochems. Condensates and LPG: processing, storage and logistics

MOZAMBIQUE SYNERGIES IN STRATEGIC LOCATION

LNG VOLUMES: hub in the Indian Ocean Ports, shipping routes, and trading platforms. South – South integration, and Mozambique dvesifying away from South Africa.

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4 FOREIGN INVESTMENT FUNDS

ENH EQUITY refinance. Financial partner in the short-term with potential into a strategic partner in the long-

term.

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1GLOBAL CONTEXT AND TIME TO MARKET – DEMAND AND SUPPLY DYNAMICS, LIQUIDITY CONSTRAINTS, LEVERAGE CAPABILITY

2 ENH FUNDING – SUBORDIANTED TRANCHE AND BACK-ENDED IN TERMS OF CASH-FLOW

3LOCAL CONTENT MAXIMIZATION – CAPITAL, TECHNOLOGY, HUMAN RESOURCES, INSTITUTIONAL CAPAPBILITIES, SME’S CLUSTERS TO CORE O&G SERVICES, TIME-LIMIT AND GRADUALISM.

4 WIDER STAKEHOLDERS EXPECTATIONS.

CHALLENGES

STRENGTHS

MASSIVE RESERVES

STRATEGIC LOCATION

COST-EFFICIENT + STRATEGIC PARTNER + STABLE REGULARORY FRAMEWORK

SUPPLY DIVERSITY

CHALLENGES AND STRENGTHS

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THANK YOU

investment opportunities in oil and gas - mozambique · 16 pemba oil & gas service centre phase...

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