Petrobras begins oil exploration in Mozambique by March 2007

28 November 2006

Sao Paulo, Brazil, 28 Nov – Brazil’s Petrobras, which had already announced it would drill fro oil in Mozambique, plans to start that activity in the first quarter of 2007, a company source told Macauhub.

No precise date has yet been set, but according to the source, who asked to remain unnamed, exploration will begin “in the first quarter,” of next year.

In October, the executive manager for international business development of Petrobras, Luís Carlos Moreira, and by the chairman of the board of Mozambican oil and gas company, ENH, Issufo Anuar Daúfo Abdula, signed a memorandum of understanding for exploration of oil, natural gas and biofuels, such as biodiesel and ethanol.

The natural gas and oil will be explored on “land and sea.”

Biodiesel production will be carried out using jatropha, which is readily available in Mozambique and ethanol will be made from sugar cane.

The division of revenue from the partnership between Petrobras and ENH has not yet been defined and will depend, according to the source, on the involvement of each company in the stages of the production process, which has yet to be determined.

Currently, Petrobras is involved in an oil bloc in Mozambique together with Malaysia’s Petronas, in the Zambezi delta. (macauhub)