The Mozambican government and Chinese oil company CNOOC Hong Kong Holding signed five concession contracts on Thursday in Maputo for oil and gas exploration in the Angoche sedimentary basin, located off the coast of Nampula province. Additionally, a sixth contract was signed with Italian energy company ENI.
At the signing ceremony, Minister of Mineral Resources and Energy Carlos Zacarias noted that this milestone is the culmination of a process that began in November 2021, when the sixth public tender for exploration and production concessions was launched.
The initiative aims to attract more investment to Mozambique’s hydrocarbons sector and increase geological knowledge of the country’s sedimentary basins.
“The signing of these contracts represents a significant success. The policies, along with the legal and regulatory frameworks approved by our government for hydrocarbon operations in Mozambique, have greatly contributed to this achievement,” Zacarias said.
Following the oversight of these contracts, CNOOC will undertake extensive oil operations and research, including drilling a minimum of four deep-water wells. These efforts could potentially lead to new petroleum discoveries in Mozambique.
“We are optimistic about the concession areas, based on preliminary studies in the Angoche and Save sedimentary basins.
However, determining the commercial viability of these resources will depend on the quality of the further surveys conducted by CNOOC,” Zacarias added.
He emphasized that CNOOC must adhere to the established work programs in the concession contracts, comply with petroleum and environmental legislation, and use environmentally friendly technologies to ensure that oil operations coexist sustainably with other economic activities.
Furthermore, Zacarias called on CNOOC to observe international best practices in the oil industry to guarantee sustainable production of oil and natural gas.
While no representative from CNOOC was authorized to speak to the media, Nazario Balangane, chairperson of the board of the National Petroleum Institute (INP), provided additional insights. He explained that the initial phase involves eight-year contracts for prospecting.
If no discoveries are made, the contracts will end. However, if discoveries occur, the process will advance to assess the size of the fields, followed by production, at which point the production sharing model will commence.
