Mozambique: Malaysian company to survey for oil in Rovuma basin, Cabo Delgado province

13 October 2008

Maputo, Mozambique, 13 Oct – The Mozambican government and Malaysian company Petronas Carigali Friday in Pemba signed a concession contract for oil surveying and production in areas 3 and 6 of the Rovuma bloc, in the northern Mozambican province of Cabo Delgado.

Newspaper Notícias reported that Rovuma is one of the least surveyed areas in terms of oil, although it is expected to have considerable amounts of oil and/or gas due to its geological characteristics.

Petronas’ involvement in the region follows operation by Canadian company Artumas Group, Norway’s Norsk Hydro, US company Anadarko and Italy’s ENI.

The newspaper also said that between 2006 and 2009, “just over US$300 million will be invested in oil operation in the Rovuma Basin.”

The chairman of the Oil Institute, Arsénio Mabote, told the newspaper that the number of surveys carried out in the Rovuma Basin was still small, but noted that the region had great potential.

“We have, for example, occurrence of hydrocarbons on the surface in the area, and naturally the companies have great expectations of oil being found there, as well as natural gas.” We also know that on the other side of the border, in Tanzania, there is natural gas in Navibay and Songo-Songo that is already in production,” Mabote said.

Mabote said that, “all this information leads us to understand that the Rovuma Basin, on the Mozambican side, will also be quite interesting, which means that there are conditions for natural gas or oil to occur in the Rovuma Basin.”.

Mabote noted, however, that, “only drilling to be carried out over the next few years can clearly determine the occurrence or lack of oil.” (macauhub)