Mozambique 17 May 2017: Gas projects shrug off Mozambique debt scandal

Good afternoon. A final investment decision for the Eni-led floating LNG project in Mozambique’s Rovuma Basin could now be just weeks away after the government approved the financing structure for the multi-billion-dollar project yesterday.

SEE: Mozambique’s Coral FLNG project clears last major hurdle before FID

As Zitamar explained in an article on Monday, the projects in the Rovuma Basin should move  ahead despite the hidden debts scandal that has roiled Mozambique’s economy, and in particular the public finances. However, the scandal has probably damaged how much money the state can now make from the projects.

SEE: Have Mozambique’s ‘hidden debts’ hurt prospects for future gas riches?

Perhaps in an effort to show it is getting tough on corruption, the state prosecutor this week charged a former minister of taking state funds to pay for a trip to Mecca for him and three friends.

FREE TO READ: Mozambique charges former Justice Minister over ‘corrupt’ Mecca pilgrimage

Mozambique has now persuaded the European Union that its aviation safety procedures are good enough to allow its airlines to fly to Europe. However, it now falls to the airlines themselves to apply for that right.

SEE: Mozambique airlines cleared to apply for access to EU airspace

And finally, good news for another graphite project in Cabo Delgado which reckons it can make an average 50% profit over 17 years of operation in the district of Ancuabe.

SEE: Triton says Mozambique graphite project could make $663m profit over 17-year life

Have a great week.
 

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