Audit Reports on Recoverable Costs of Areas 1 and 4 of Rovuma Basin
Maputo, March 09, 2021 - In 2018, INP started the audit process on the recoverable costs of the Concession Contracts for Exploration and Production (EPCC) of Areas 1 and 4 offshore of the Rovuma Basin, related to the 2015, 2016 and 2017 Financial Years which culminated with the certification of the costs declared as recoverable by the companies operating in the aforementioned areas, namely ENI and Total. The process was assisted by Bayphase Geologists, Engineers and Investment Analysts, an independent British consultant with extensive experience in conducting this type of audit.
During the process, it was found that out of the approximately 2 billion US dollars declared by the concessionaires in the two areas, about 2% were not considered eligible for recovery. The reasons for the non-eligibility of these costs as recoverable include the non-compliance with the accounting and financial procedures established in the EPCC, the non-submission of supporting documents for the costs incurred and others that are included in the respective Audit Reports.
At the moment, the audit of recoverable costs of the Specific Purpose Entity Coral South FLNG in Area 4 is in the process of finalisation. The audit relates to the financial year 2017, the year in which the entity began activities related to the development of the Coral South FLNG Project.
In May this year, the audits of the recoverable costs of Areas 1 and 4 of the Rovuma Basin will begin, referring to the financial years 2018, 2019 and 2020, respectively, and the process of hiring the independent consultant for this purpose is being finalised.
Note that the audit on recoverable costs of the PSA Area, in Pande and Temane blocks, operated by the south African company Sasol, for the year 2017 has already been completed, and the final report will be published in few days. The assessment of the data relating to the year 2018 for the same area is in its final phase, and the final report is expected to be issued later this year.
Read here the executive summaries of the reports.
This article was prepared with the assistance of the INP Planning and Economics Unit. For more information please contact the Communication Unit by email at email@example.com or by phone 21248300.