Golfinho/Atum

Location and Geology

The project is situated in the Rovuma Basin, offshore Mozambique, approximately 40 kilometers off the coast of Cabo Delgado. The gas fields, Golfinho and Atum, are located in waters about 1,600 meters deep.

Project Details

Status and Timeline

• The project is currently in development.
• The final investment decision (FID) was made in June 2019.
• Construction works began in August 2019.
• Production is expected to start in 2026, although some sources indicate LNG production was scheduled to begin in 2024.

Operators and Owners

• The project is operated by TotalEnergies.
• The ownership structure includes:
  • TotalEnergies: 26.5%
  • ENH Rovuma Área Um, S.A: 15.0%
  • Mitsui E&P Mozambique Area1 Limited: 20.0%
  • ONGC Videsh Rovuma Limited: 10.0%
  • Beas Rovuma Energy Mozambique: 10%
  • Bharat Petroresources Limited (BPRL) Ventures Mozambique: 10%
  • PTTEP Mozambique Area 1: 8.5%.

Reserves

• The complex holds significant hydrocarbon reserves:
  • Crude oil and condensate: 53.85 million barrels (remaining recoverable reserves as of 2021).
  • Gas: Approximately 450,935.86 million cubic meters (remaining recoverable reserves as of 2021) and 991,080.28 million cubic meters (gas in place).

Production and Facilities

Production Capacity

• The project is designed to produce:
  • Crude oil and condensate: 2.56 million barrels per year (production design capacity by 2027).
  • Gas: 1,033.56 million cubic meters per year (production design capacity by 2027).

LNG Facility

• The project includes the development of a 12.88 million tonnes per annum (Mtpa) onshore liquefied natural gas (LNG) facility located on the Afungi peninsula in Cabo Delgado. This facility will have two liquefaction trains and is planned for expansion up to 50 Mtpa in the future.

Infrastructure

• The LNG facility will include gas pre-treatment facilities, full-containment LNG storage tanks, a materials offloading facility, and an LNG marine terminal capable of accommodating large LNG carriers.
• A subsea system with 18 wells and a 40km pipeline will be used to extract gas from the Golfinho/Atum fields and transport it ashore.

Economic and Financial Aspects

Investment

• The Mozambique LNG project is estimated to cost approximately £15.5 billion ($20 billion).

Contractors and Consultants

• The engineering, procurement, and construction (EPC) contract for the onshore liquefaction plant and its support facilities was awarded to a consortium of McDermott, Chiyoda Corporation, and Saipem. Saipem’s share of the EPC contract is valued at £4.7 billion ($6 billion), while McDermott’s share is valued at £1.5 billion ($2 billion).

Economic Analysis

• The project involves detailed economic assessments, including Net Present Value (NPV) and Internal Rate of Return (IRR) calculations. It also includes cash flow statements, capital and operating expenditures, and tax liability analyses.

Environmental and Regulatory Approvals

• The Mozambican Ministry of Coordination of Environmental Affairs (MICOA) approved the Environmental Impact Assessment (EIA) report in June 2014.
• The Government of Mozambique gave the final approval for the Area 1 Mozambique LNG development plan in March 2018.

Market and Export

• The LNG produced will be exported to Asian and European markets, as well as used for domestic consumption in Mozambique.

This project is one of the largest natural gas developments in recent years and is expected to be transformational for Mozambique and the global energy landscape.