Indonesian company to survey for oil and gas in Mozambique

23 June 2010

Maputo, Mozambique, 23 June – The concession on area of 10,200 square kilometres in the Buzi block is to be granted to Buzi Hydrocarbons, of Indonesia, to carry out seismic surveys and prospecting for oil and gas, according to a report in Mozambican newspaper Notícias.

The paper said that the concession would be granted this year following approval of the respective environmental impact study by the Ministry for Coordination of Environmental Action.

According to the representative of state oil and gas company ENH at Buzi Hydrocarbons, Amade Valy Mamad, the project is in its initial stages, and is currently awaiting government approval to start de-mining of the area and opening up seismic lines.

Later an international public tender will be launched for the seismic acquisition contract, at a cost of over US$30 million, finances by Hidrocarbonetos de Moçambique and Buzi Hydrocarbons, a subsidiary of the PT Kalila Production group.

Amade Valy Mamad said that the plan of activities outlined drilling the first research well next year.

In the 1960s a seismic survey of the region was carried out with the results confirming the existence of natural gas in an area of approximately 500 square kilometres, of which 40 will now be the target of new surveys. (macauhub)