China National Offshore Oil Corporation (CNOOC) has inked concession contracts for oil exploration and production with Mozambique’s energy ministry and national energy company ENH.
The contract is for five offshore blocks in waters off the African nation, totaling approximately 29,000 square kilometers with ocean depths ranging from 500 to 2,500 meters, according to the statement.
The first phase of the exploration period lasts four years, with five CNOOC subsidiaries acting as operators during the exploration and development phases, with separate operator rights and interests. ENH owns the remaining non-operational interests.
In 2019, CNOOC’s gas and power arm Singapore Trading and Marketing entered a 13-year sale and purchase deal with Mozambique LNG1 Company for liquefied natural gas (LNG) from the Mozambique Area 1 onshore LNG project.
CNOOC stated at earnings briefing in March that it intends to increase reserves and output this year.
According to the Oil & Gas Journal, Mozambique has 100 trillion cubic feet (Tcf) of proven natural gas reserves, making it Africa’s third-largest holder after Nigeria and Algeria.
