Hydrocarbon exploration in the Kifaru-1 well, an onshore concession in northern Mozambique, failed to find commercially viable deposits and will be abandoned, announced French company Maurel&Prom, which is part of the business consortium.
Beginning in January, the drilling reached a depth of 3,100 metres, as far as the rocks formed in the Eocene period, through the Miocene and Oligocene zones, said Maurel&Prom, which has a 27.71 percent stake in the project led by US group Anadarko Petroleum (35.70 percent).
After missing the goal of finding a reservoir of hydrocarbons of economic value, the Kifaru-1 well will be “sealed and abandoned” by the consortium, which also includes Wenthworth Resources, with 11.59 percent, Mozambican state company ENH with 15 percent and Thai group PTT Exploration and Production (PTTEP), with 10 percent.
In a statement, the chief executive of Wentworth Resources, Geoff Bury, said that, despite the results “not meeting expectations,” the company will continue to work with Anadarko and other partners to “review all the data collected and determine the next step in the exploration phase of the onshore Rovuma block.”
In the concession covering 13,500 square kilometres that the group operates in the far north of Cabo Delgado province, four wells have been drilled, called Kifaru-1, Tembo-1, Mocímboa-1 and Mecupa-1.
Until the results of Kifaru-1, previous research showed evidence of the presence of hydrocarbons such as oil and gas in the Mocímboa-1 well formed in the Cretaceous period, according to Wentworth Resources.
The investors hope that the concession will have the same potential as an adjacent concession (Area 1), on the coast of Cabo Delgado, and where reserves of 50 trillion to 70 trillion cubic feet of natural gas have been discovered in deep water.
Also led by Anadarko Petroleum, the Area 1 consortium brings together ENH (15 percent), Indian groups ONGC Videsh (20 percent) and BRPL Ventures (10 percent), Japan’s Mitsui & Co (20 percent) and Thailand’s PTTEP (8.5 percent).
Exploration of the gas discovered in this concession is scheduled for 2018, according to the most optimistic estimates, and should be achieved by installing two natural gas liquefaction units on the Afungi peninsula, in the border district of Palma.
The initial investment planned for the advancement of the industrial park totals around US$30 billion, to be carried out jointly with the business consortium led by Italian group ENI, which owns the rights to the Area 4 concession, also in deep water.
The final investment decision should only, however, be known in the middle of this year, according to recent statements from ENI’s financial director, Massimo Mondazzi, ensuring that it will be one of the most important in 2015. (macauhub/MZ)