Good afternoon. The Coral floating LNG project in the Rovuma Basin has already paid $34 million in taxes since it started exporting LNG last November, Carta de Moçambique reported yesterday.
Is that a lot or a little? A recent report by the think tank CIP suggests that the government is not getting a good deal from the project, due to the way the tax liability is structured.
Another question is what should the government do with this windfall — which is going to get a whole lot bigger in the coming years, if the onshore projects go ahead. So far, the plan is for a sovereign fund — but the details of that are still being haggled over, even as the first of the gas projects is already generating revenues.
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