Maputo, Mozambique, 05 Dec – Norwegian group Norsk Hydro ASA is on the brink of signing an agreement with Mozambican authorities for oil exploration in two blocs in Northern Mozambique, officials said in Maputo Friday.
Mozambique’s energy minister said that the exploration contract was due to be signed at the beginning of 2006 and a spokesperson for Norsk confirmed that negotiations are in their final stages.
Blocs 2 and 5 are located in Rovuma Basin, near Quirimbas National Park and the Mozambican state is expected to hand over 80 to 90% to Norsk Hydro while the remainder will belong to state oil company, Empresa Nacional de Hidrocarbonetos.
The Rovuma Basin includes both land and sea areas and stretches from the border with Tanzania, to the North, to the port city of Nacala, to the South.
Norsk Hydro ASA’s core operations are production and sale of oil and gas, production of aluminum and fertilizers. The group operates through three subsidiaries – Hydro Oil and Energy, which produces around 480,000 barrels of oil per day, Hydro Aluminium, light metals, and Hydro Agri, which produces fertilizers.
Hydro Aluminium represents 40% of the group’s total turnover, Hydro Oil and Energy 29% and Hydro Agri 20%. (macauhub)