Rosneft and ExxonMobil team up in Mozambique
Russian and US majors win rights to explore in three blocks in Mozambique licensing round
The partners were awarded blocks A5-B in the Angoche Basin as well as Z5-C and Z5-D in the Zambezi basin. The companies will start talks with the government of Mozambique and the Instituto Nacional de Petroleo (INP) on the detailed terms of participation. Once completed ExxonMobil will become the operator, Rosneft said in a statement.
The companies already produce oil together off the coast of Russia's Sakhalin Island but further cooperation between the two in Russia's Arctic was halted when the US imposed sanctions on Russia in order to punish it for its military activity in Ukraine.
South Africa's Sasol was also awarded block PT5-C adjacent to its Pande and Temane fields with partner, Mozambique's state-owned ENH. Italy's Eni was awarded block A5-A in the Angoche Basin with partners Sasol and Norway's Statoil.
"Together with our bid partners, we welcome the opportunity to further participate in the growth and development of Mozambique, the heartland of our upstream operations. The country has been, and continues to be, a strategic partner for Sasol", says the company's president and CEO, David Constable.
Delonex Energy in partnership with India Oil Corporation was awarded block P5-A in the Palmeira basin. The fifth round offered 15 blocks in 11 offshore and onshore areas, which will represent an investment of $711m over the next four years. Bids were received from companies for eight of the 15 areas on offer.
The INP's director of evaluation Jose Branquinho said he welcomed the response to the round, and said it would launch a new tender in October 2016. "We are going to keep going with the pace of exploration", he told delegates attending a conference in Cape Town late October.
A string of significant gas discoveries in the Rovuma Basin in the north-east has substantially increased the prospectivity in the country and exploration activity has picked up. Current estimates from two of five exploration blocks in Cabo Delgado province where Mozambique meets Tanzania, indicate that the country holds well over 100 trillion cf.