Mozambique: Oil and Gas company ENH to invest US$30 in Búzi gas bloc

10 September 2008

Maputo, Mozambique, 10 Sept– Mozambican state oil and gas company, Empresa Nacional de Hidrocarbonetos (ENH), plans to invest US$30 million in the first eight years of activity exploring the gas reserves in the Búzi bloc, in Sofala province, according to a report in Mozambican newspaper Notícias.

The state company obtained a exclusive exploration rights license for a 25 year period and government spokesman, Luís Covane said that the Government’s decision was made after the availability of hydrocarbons was confirmed in the region, with estimated reserves of between 10 and 17 billion cubic feet of natural gas.

Covane said he believed that, once the license had been granted it would be easier for ENH to establish partnerships to raise the funds needed to survey and explore gas in the Búzi bloc, in what will be the second project of its kind in the country.

South African petrochemical company Sasol is already involved in gas exploration in the Pande and Temane gas fields, in Inhambane province, where it is estimated there are reserves of some 3.7 billion cubic feet of natural gas.

According to Covane, who is also deputy Education and Culture minister, Mozambique has enormous potential of confirmed natural, for which exploration the country needs technical and financial assistance.

Under the terms of Sasol’s project, the South African company built a gas pipeline over 865 kilometers long linking the Pande and Temane gas reserves to South Africa’s Secunda industrial area, where the gas is used.

Recently Sasol announced that it was investing over US$130 million in seismic surveys with a view to updating figures on the potential natural gas available in Pande and Temane. (macauhub)