Oil exploration in Inhambane, Mozambique is commercially viable

9 March 2006

Maputo, Mozambique, 09 March – Oil survey work by South Africa’s Sasol has shown that its offshore oil concession area in Inhambane, Mozambique is commercially viable, according to local newspaper Canal de Moçambique.

According to the latest edition of the paper, the surveys show that the quantity and quality of oil found in the area between Divinhe, in Sofala province, and Cabo de São Sebastião, south of Vilanculos, make the concession profitable.

Mozambique is currently an important producer of natural gas, which is mainly exported to South Africa, and has granted offshore concessions in several areas, the latest of which was granted to Norwegian company Norsk Hydro, in the Rovuma basin.

The beginning of exploration, the paper said, will require negotiations with several tourist operators on the island of Bazaruto, which is near the oil strike area.

These operators include Portuguese hotel chain Pestana and Rani Resorts, owned by Saudi Arabian capital.

The oil technicians from the South African company are currently studying ways of preventing environmental damage, namely through the use of pipelines, the paper said. (macauhub)