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Mozambique Natural Gas Condensate Analysis: Offsetting Production Royalties with Production By-Products

Abstract

Oil is often produced in developing parts of the world with limited infrastructure where stakeholders are often challenged with comprehensive build-outs that include roads and even airports. In these environments production by-products such as natural gas condensates can be unfeasible to commercialize due to low quantities relative to the cost of processing and transportation. This study looks at work done in Mozambique on natural gas condensate characterization and commercialization studies to provide recommendations to new projects for facilities design and contract negotiation to consider ways of using production by-products, such as condensate, in the royalty negotiation process, especially in remote and developing regions. These results can also be used in future petroleum projects in Mozambique.