Maputo, Mozambique, 06 Dec – Malaysian oil company Petronas and Mozambican state oil enterprise, Empresa Nacional de Hidrocarbonetos de Moçambique (ENH) said Sunday that in 2006 they would restart oil prospecting in the Zambeze Delta in central Mozambique.

According to the two companies, the studies carried out as part of a joint prospecting project, which began three years ago, led to the decision to drill a new well in the exploration area, which covers a total 29,000 square meters.

The agreement between Petronas and ENH gives the Malaysian company an 85% share in the bloc, through its subsidiary Petronas Carigali Mozambique E&P Limited, while the Mozambican state company holds the remaining 15% stake.

If oil is discovered and production goes ahead, Petronas Caligari will be the official operator and ENH will have the option of increasing its stake in the joint venture up to 20%.

Total investment in the Petronas-ENH exploration is estimated at US$70 million.

Petronas is also involved in upstream activities in Algeria, Angola, Chad, Cameroon, Gabon, Niger, Sudan, South Africa, Tunisia and Lybia.

The Zambeze river delta basin has known hydrocarbon deposits and several natural gas fields have already been discovered on-shore.

Further south, South African oil company Sasol is prospecting for oil in the Sofala Basin, investing some US$40 million in the project. (macauhub)