• 2 hours French Strike Disrupts Exxon And Total’s Oil Product Shipments
  • 4 hours Kurdistan’s Oil Exports Still Below Pre-Conflict Levels
  • 6 hours Oil Production Cuts Taking A Toll On Russia’s Economy
  • 8 hours Aramco In Talks With Chinese Petrochemical Producers
  • 9 hours Federal Judge Grants Go-Ahead On Keystone XL Lawsuit
  • 11 hours Maduro Names Chavez’ Cousin As Citgo Boss
  • 17 hours Bidding Action Heats Up In UK’s Continental Shelf
  • 22 hours Keystone Pipeline Restart Still Unknown
  • 1 day UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 1 day Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 1 day Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 1 day German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 1 day Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 1 day Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 2 days Oil Prices Rise After API Reports Major Crude Draw
  • 2 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 2 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 2 days Statoil Looks To Lighter Oil To Boost Profitability
  • 2 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 2 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 2 days Whitefish Energy Suspends Work In Puerto Rico
  • 2 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 3 days Thanksgiving Gas Prices At 3-Year High
  • 3 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 3 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 3 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 3 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 3 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 3 days ConocoPhillips Sets Price Ceiling For New Projects
  • 6 days Shell Oil Trading Head Steps Down After 29 Years
  • 6 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 6 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 6 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 6 days Venezuela Officially In Default
  • 6 days Iran Prepares To Export LNG To Boost Trade Relations
  • 6 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 7 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 7 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 7 days Rosneft Announces Completion Of World’s Longest Well
  • 7 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
Energy Majors Hit Hard By Climate Regulations

Energy Majors Hit Hard By Climate Regulations

Siemens and General Electric have…

Has The Big Oil Fire Sale Started?

Has The Big Oil Fire Sale Started?

The world’s largest sovereign wealth…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

ExxonMobil Investment Could Bring Mozambique Bank From Near-Default

Maputo

A new investment by ExxonMobil in Mozambique could potentially help the African country battle a deepening debt crisis, according to two people “with knowledge of the matter” who were cited by World Oil.

The discoveries, made by Anadarko Petroleum Corp. and Eni SpA, could generate up to $1.3 billion in revenues for the government, one of the anonymous sources said.

Exxon has also demonstrated interest in Area 4 - an area currently being exploited by Eni. China bought out 20 percent of Area 4 from the Italian firm three years ago.

Mozambique has been grappling with its debt crisis after $1.4 billion in hidden loans and notes became public in April, prompting the World Bank and other aid institutions to stop their donations to the impoverished country.

“We don’t comment on rumors or speculation,” Lauren Kerr, a spokeswoman for Exxon, told World Oil in an email after the publication asked for a comment. Anadarko and Eni also declined to comment.

Vast gas discoveries have the potential to triple Mozambique’s growth over the next five years, but short term debt has paralyzed political and economic systems.

Related: Brexit Puts North Sea Oil In Limbo

The state-owned Mozambique Asset Management is set to default on $535 million in loans, which it took out to construct shipyards to service natural gas drilling off of its coast.

Because of the grace period included in the loan terms, Mozambique is not yet technically in default, but it could default soon if it fails to convince creditors to make a deal. Mozambique had tried to renegotiate with creditors, led by Russia’s VTB Bank, but has been unable gain some leniency.

The ballooning debt is connected to the hype surrounding Mozambique’s large natural gas reserves that sit just offshore. Estimates vary, but there could be 100 to 180 trillion cubic feet of natural gas, which puts it just behind the continent’s two largest holders of natural gas reserves, Nigeria and Algeria.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News