Italian group ENI finds more natural gas in Mozambique

3 September 2013

Italian oil and gas group ENI has found more natural gas in the Area 4 block of the Rovuma basin, in northern Mozambique, after drilling the Agulha test well, the National Oil Institute (INP) said Monday in Maputo.

According to a statement cited by the Mozambican press, preliminary results show that the area where the Agulha well was drilled may contain between 5 and 7 trillion cubic feet of natural gas.

The well is located in the south of Area 4, around 80 kilometres from the coast and the aim of drilling it was to survey and test for hydrocarbons in a geological sequence that is older than that of the Mamba Complex.

The concession holders of Area 4 of the Rovuma basin are ENI East Africa, which is the operator and has a 41.43 percent stake after selling 28.57 percent to the China National Petroleum Corporation (CNPC), Mozambican state company Empresa Nacional de Hidrocarbonetos (ENH), with 28.57%, and Portugal’s Galp Energia and South Korea’s Kogas, each with 10 percent.

Last week, Mozambique’s Tributary Authority said that the Italian group had paid US$400 million in capital gains tax and agreed to build a power station in the Palma district, of Cabo Delgado province, worth US$130 million, to have its deal with the Chinese group approved. (macauhub)