Consortium led by Italy’s Eni plans to invest more than US$280 million in Mozambique

18 October 2018

Italy’s Eni and South Africa’s Sasol on Wednesday signed contracts with the Mozambican government to grant contracts for three blocks for oil and natural gas prospecting and exploration.

The two oil companies set up a consortium to explore two blocks at Temane and Pande in Inhambane province in southern Mozambique.

The signing of the contracts marks the end of the negotiations between the multinationals and the Government that lasted about four years.

“With these contracts, all the conditions for the start of hydrocarbon research in the PT-5C and A5-A areas have already been created, with minimum investment of US$203 million from Eni and US$80 million from Sasol,” said Max Tonela, Minister of Mineral Resources and Energy.

The minister recalled that the investments will be made over a period of eight years (term set by Mozambican oil legislation for the research phase), renewable up to a maximum of 30 years.

Stefano Cabonara, director of Eni, one of the multinationals awarded a block in Angoche and which leads the consortium in the Temane and Pande blocks, publicly noted the company’s strong presence in Mozambique, which began in 2006 with the acquisition of a stake in the oil block of area 4, in the Rovuma Basin. (macauhub)