BP to Invest $85 Million in Mozambique’s Oil, Modernization Projects

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By Zimbabwe Investor on October 5, 2013. No Comments

Oil tanker in a bay in Beira, Mozambique

Over the span of five years, oil giant BP will inject an $85 million investment into Mozambique’s gas and facility modernization projects, according to Macauhub. Facilities at two airports will benefit from upgrades.

By enhancing production centers, the company will be able to better “meet domestic and regional demand,” Thandi Orleyn, BP director for South Africa said in the report.

“The biggest portion of the investment, $75 million, will be spent on modernization of infrastructure in order to improve the safety and reliability of shipments to the port terminals of Nacala, Beira and Matola,” Orleyn added.

According to Macauhub, $10 million will go to improving standards at the airport facilities.

Last year, BP invested $7 million in Mozambique’s Nacala fuel terminal, which prior was experiencing production slumps due to financial road bumps. Then, BP owned 16 percent of shares within the country’s market. Now the company has 18 percent of Mozambique’s market shares.

“With the opening of the rehabilitated fuel terminal, the BP will consolidate its second position in our country in fuel supply,” Salvador Namburete, Mozambique Minister of Energy said in a Xinhua report published last October. “This investment shows the compromise the company has in the fuel market in Mozambique, and we are determined to expand our business.”

BP has been operating and investing in Mozambique since the 1920s, the company website said. Originally entering the Mozambican market through a partnership with Shell, BP is now the sole supervisor of operations in the country carrying out refurbishment