Mozambique Announces Results of Fifth Licencing Round

The Institute of National Petroleum of Mozambique (INP) on Tuesday announced the results of the fifth competitive bidding round for Exploration and Production Concession Contracts.  

The fifth round commenced on the 23rd October 2015 and companies had nine months to evaluate the available technical data and formulate their applications.  The round followed a competitive bid process that evaluated the bids on defined published criteria which included Health Safety and Environmental (HSE), financial strength, technical competence / capability and the economic terms offered to the Mozambican government, INP stated.

A total of fifteen areas were included from within offshore Rovuma, offshore Angoche, offshore Zambezi, onshore Pande-Temane and onshore Palmeira covering approx. 74,259 sq kms.  Bids were received from potential operators for eight of the fifteen areas on offer.

After evaluation of the bids, INP announced that Eni will be operator for Angoche Area A5-A, ExxonMobil for Angoche Area A5-B, Zambezi Area A5-C and Zambezi Area A5-D. Sasol will operate Pande/Temane Area PT5-C while Delonex Energy will be operate Palmeira Area P5-A.

“Despite the current low oil price, the bids received for all the Areas awarded have very significant technical work programs indicating Mozambique’s significant hydrocarbon potential,” INP said in a statement.

In the first exploration phase INP expects these companies to spend over $691 million, drill a minimum of 10 wells (8 in deep water), acquire of over 3,000 km of 2D seismic, over 18,400 km2 of 3D seismic, 10,000 km2 of FTG (Full Tensor Gravity), high resolution magnetics programs and other geotechnical studies.