China's CNOOC pens contracts for five blocks offshore Mozambique

Chinese state-run energy company CNOOC on May 24 announced the signing of petroleum exploration and production concession contracts for five offshore blocks in Mozambique.

The agreements were finalised with the Ministry of Mineral Resources and Energy of Mozambique and the state energy company Empresa Nacional de Hidrocarbonetos (ENH).

The contracts cover five blocks: S6-A, S6-B, A6-D, A6-E, and A6-G, spanning a total area of approximately 29,000 km² with water depths ranging from 500 to 2,500 meters. According to the contract terms, the initial exploration period for the blocks is set at four years. 

The five wholly owned subsidiaries of CNOOC shall act as the operators in the exploration and development phases and independently owns the operating interests in the blocks (S6-A 70%, S6-B 77.5%, A6-D 77.5%, A6-E 80%, A6-G 79.5%). ENH owns the remaining non-operating interests (S6-A 30%, S6-B 22.5%, A6-D 22.5%, A6-E 20%, A6-G 20.5%).

Earlier this week, Abu Dhabi National Oil Company (ADNOC) announced the acquisition of Portugal-based Galp’s 10% interest in the Area 4 concession of the Rovuma basin in Mozambique. 

The Area 4 concession includes the operational Coral South Floating LNG (FLNG) facility, the planned Coral North FLNG development and the planned Rovuma LNG onshore facilities. This investment is ADNOC’s first in Mozambique and complements ADNOC’s efforts to expand its LNG portfolio.