The Mozambican government, through its National Petroleum Institute (INP), has launched the fifth licencing round for exploration and production of hydrocarbons in fifteen blocks
The blocks cover a total area of 76,800 sq km. Three of the blocks are in the Rovuma Basin, while the remaining 12 are in the Mozambique Basin, eight offshore and four onshore. The Mozambique Basin covers an area of half a million square kilometres, stretching from the Zambezi Delta to the border with South Africa.
Esperanca Bias, minister of mineral resources, said that just five years of exploration in the Rovuma Basin has increased the country’s known natural gas reserves from 141.5bn cu/m to over 5.6 trillion cu/m.
She added that the bids for the acreage should include plans for upstream activities, institutional support, training and local content.
Arsenio Mabote, chairperson of INP board, pointed out that bidding companies will also be judged on their ability to optimise resource recovery and deliver an excellent technical programme.
According to the board, the winning bidders must also show their timetables, with exploration programmes completed within eight years. The INP added that no signature bonus will be required. However, companies must commit themselves to making a quarter of hydrocarbon resources available for use in Mozambique.
According to Ministry of Mineral Resources, state hydrocarbon company ENH must be be awarded at least a ten per cent stake in each area. In addition, there is a minimum requirement of one operator and at least one non-operator (in addition to ENH) for each block.
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Mozambique to start fifth oil and gas blocks auction in 2014
