How does Orlean Invest plan to expand in Mozambique?

We have initiated a new project in Mozambique by establishing a joint venture with the local LFS, DNH, to construct the Pemba oil and gas terminal, which will support exploration and production activities. This project is set to commence soon and involves an investment of $150 million for the first stage. Our aim is to replicate our successful business model from Onne, Nigeria, in Mozambique over the next five to ten years, depending on market demands. We anticipate the completion of the first phase in Pemba by the end of 2020, coinciding with the start of the new drilling campaign for Eni at the end of this year or early 2021.

In the past, Orlean has focused mainly on Nigeria. Do these recent expansions into new markets represent a change in strategy?

These new initiatives indeed signify a departure for us. Until about a year ago, we primarily concentrated our efforts on Nigeria, which is our main market. However, our board of directors made the decision to continue expanding into new markets. Mozambique is often referred to as the new “El Dorado.” While the prices in Mozambique are currently substantial in terms of value, they cannot yet be compared to Nigeria. These are two very distinct markets. Mozambique may potentially surpass Nigeria in size within the next 10 to 15 years, but it is not the case at present.

In Nigeria, Intels, under Orlean Invest, is investing in the Eko Atlantic, one of the largest real estate projects in Africa. What are Intels’ plans for this undertaking?

We have initiated phase one of the Eko Atlantic project, which involves the construction of the first three buildings. These buildings are expected to be completed by the end of 2017 and will consist of an average of 220 two-bedroom apartments each. We remain flexible regarding the number of apartments we will offer based on client requests, as customers may seek anything from one to four-bedroom apartments. We anticipate that the market demand will mainly be for two-bedroom apartments. Our ultimate plan is to complete the entire 45-hectare project and establish a comprehensive community within the Eko Atlantic area. To ensure a consistent level of development, we require further investments in infrastructure in the country. Additional investments are expected to be made by the beginning of next year, subject to market trends, of course.

Can you provide insights into some of Intels’ other major projects?

In Lagos, we are actively involved in the construction of the Badagry deep-sea port, situated 16 kilometers outside the city en route to Benin. We have formed a consortium comprising Orlean, Oando, APMT, Maersk, and the Mediterranean Shipping Company, and we anticipate the possible addition of Grimaldi as well. The objective is to build a new mega port with a 16-meter draught and specialized terminals. Maersk, APMT, and Mediterranean Shipping Company will handle containers and container terminals, while Orlean can cater to potential needs for an oil tank farm depot. Intels will be responsible for shore-based facilities. Port Harcourt is in a more favorable position to support the industry compared to Lagos. However, one never knows. If significant oil discoveries are made near Lagos, the establishment of an oil tank farm depot might become necessary. Additionally, we are likely to be involved in the new Lekki International Airport, a project overseen by the Chagoury Group. The project is expected to commence in 2021.

What are your expectations for the year ahead?

We are hopeful that in 2020, we will witness an increase in activity and the continued approval of projects. The country requires significant infrastructure development to facilitate the utilization of gas in the domestic market and the generation of electricity. These are crucial aspects for the growth and progress of Mozambique.