The profits of the Mozambican Hydrocarbon Company (MCH) fell 15% in the last fiscal year, to 46,7 million dollars, with the state oil company warning the "severe decline" in gas reservoirs, reported to Lusa, on Monday, September 22.
"One of the major challenges that we face will be to be able to respond to the situation of the sharp decline in production in our Pande and Temane reservoirs in the coming years, in order to maintain current performance levels," reads the message of the board of directors, led by Arsenio Maboth, which is in the report and accounts of 2024-25, closed in June.
"We also need to continue to identify new opportunities that add value to our business by relying on the collaboration of our shareholders, with whom we have been addressing the most appropriate strategies of our long-term business continuity," she adds in the message.
CMH's profits had already fallen by 15.5% in the fiscal year ended in June 2024, to USD 54.7 million, according to previous figures from the state oil company, now adding a new fall in a period (2024-25) also marked by a 9% drop in the company's natural gas sales compared to the previous one.
The administration justifies this decrease in financial performance with "the fluctuation of oil prices in the international market, as well as operational problems in key units of Temane processing plant", province of Inhambane, South of the country.
These factors limited "the production capacity of the gas and its derivative, even though routine maintenance has been registered", reads in the document, which adds that to "ensure compliance with its contractual obligations", the HCM continued the implementation of projects "that aim at maintaining and optimizing productive capacity by maximizing gas recovery" in some reservoirs and in new holes.
" The past year was quite challenging, since production operations continued to be conditional on several exogenous endogenous factors, in an environment influenced by the current international geopolitical environment, which affected the demand for natural gas, condensates and their prices, it also recognizes the administration in the document, ensuring, still, that in this period the HCM maintains "sustainable growth" and intends to invest in improving "efficiency in management".
"We hope to continue to provide dividends to shareholders in the coming years," he says.
CMH develops the operational activity of oil production and is controlled by the state-owned Hydrocarbon Company, which holds 70% of its share capital and was appointed by the Government to, together with South African Sasol Petroleum Temane (SPT), conduct oil operations in the fields of Pande and Temane production fields for a period of 30 years under the Oil Production Agreement signed in October 2000.
“Only this year, without the operation of the remaining operations, the estimated Mozambican gas production is 5.4 billion cubic meters, the sixth largest producer in Africa“
Oil is also part of the Joint Operations Agreements signed with SPT in December 2002, covering the reservoirs of Pande and Temane fields, since the company produces and sells only gas and operates in an integrated way.
Mozambique has three development projects approved to exploit the natural gas reserves of the Rovuma basin, classified among the largest in the world, off the coast of Cabo Delgado, in addition to the one operated by Eni, the only in production, also Mozambique LNG (Area 1), operated by TotalEnergies, up to 43 million tonnes per year (mtpa), and Rovuma LNG (Area 4), operated by ExxonMobil, with 18 mtpa, both in development phase.
In 2024, a study by Deloitte concluded that Mozambique’s gas reserves represent potential revenues of $100 billion.
Only this year, without the operation of the remaining operations, the estimated Mozambican gas production is 5.4 billion cubic meters, the sixth largest producer in Africa.
