Mozambique puts licensing terms under review
Mozambique is in the process of updating its licensing regulations ahead of its 4th Licensing Round. Arsenio Mabote, Chairman, Instituto Nacional de Petroleo (INP, the national oil company of Mozambique), presented his country’s licensing opportunities in a Strategy Session at IHS CERAWeek 2013.
Mozambique reviews its licensing regulationsLast year, INP announced two deepwater discoveries in the Rovuma Basin of Area 1 offshore. Partners in the block include Anadarko, operator with 36.5%, Mitsui E&P Mozambique Area 1 Ltd. with 20%, Empresa Nacional de Hidrocarbonetos, E.P. with 15%, BPRL Ventures Mozambique B.V. with 10%, Videocon Mozambique Rovuma 1 Ltd. with 10%, and Cove Energy Mozambique Rovuma Ltd. with 8.5%.
In May 2012, Anadarko, operator, discovered natural gas in the Golfinho well 16km off Cabo Delgado province. The well was drilled to 4537m in 1027m of water, and found more than 59m of natural gas pay in two Oligocene fan systems. Recoverable resources are estimated from 7-20tcf of recoverable natural gas reserves.
A month later, INP announced a second Anadarko discovery. The Arum well is located 16.6km northeast of the Golfinho discovery in Area 1. It was drilled to 3860m in 1000m of water and found 92m of natural gas pay in Oligocene reservoirs. Estimated recoverable reserves are 10-30tcf from this well. Four appraisal wells are planned.
Mabote noted that the discoveries have raised popular expectations and that the government needs to carefully develop these new resources for the people’s benefit. It is looking to manage expectations, develop infrastructure, develop the local gas market, find financing for an LNG project, and train local people for jobs in this new industry.
To support that effort the country’s government is in the process of reviewing and updating its licensing terms. This process is underway but will likely result in a concession-based licensing round. The country will hold a 4th Licensing Round in the near future.
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