Oil and Natural Gas in Mozambique

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  • Natural gas production: 80 million cu m (2004 est.)
  • Natural gas proved reserves: 127.4 billion cu m (1 January 2005 est.)
History of Petroleum Exploration in Mozambique

Exploration for hydrocarbons in Mozambique goes back to 1904 when the early explorers discovered thick sedimentary basins onshore Mozambique. Poor technology and lack of funds halted those early exploration attempts.
From 1948 onwards international oil companies moved into Mozambique and carried out extensive exploration, mainly onshore with limited activity offshore. As a result the Pande Gas Field was discovered in 1961 by Gulf Oil (now part of Chevron) followed by the gas discoveries of Búzi (1962) and Temane (1967).
Exploration activity declined in the early 1970’s due to political unrest.
New activity was established in the early 1980’s with the enactment of law 3/81 and creation of ENH. In the following years extensive work was carried out to map and appraise the Pande Field.
A breakthrough was made in 1993 when it became clear that the Pande Field could be mapped using direct hydrocarbon indicators (DHI) from seismic data and it turned out that there was a giant bright spot at the top of the reservoir. The method was later also used to map the Temane field with good result.
From 1970 to 1980 there have only been drilled 6 wildcat wells in Mozambique – 3 of them offshore.
An extensive drilling campaign conducted by Sasol in 2003 which included exploration and production wells in the Pande/Temane Block allowed the expansion of gas reserves and the discovery of Inhassoro Gas Field, making total of 5,504 trillion cubic feet (TCF). (Source: National Petroleum Institute)

Hydrocarbon Potential & Occurrences

There are four proven gas fields in Mozambique: Pande,Temane, Buzi, Inhassoro. 22 other wells drilled to date showed gas, asphalt and traces of dead oil, and surface gas seepages occur at Inhaminga, Cundue Creek, Ponta Uifundo, with oil seepages at Lake Nhangela, Angoche, Pemba, Ponta Uifundo.
The Rovuma Basin is about 400 km long by 160 km (250 by 100 miles) and is centred on the Rovuma Delta near the border between Mozambique and Tanzania. The basin occurs both onshore and offshore. Nearly 73 000 sq. km (29 200 sq. miles) of the Rovuma Basin lies within Mozambique.
A number of oil and gas seepages have been identified in both the Mozambican and Tanzanian part of the basin, proving active petroleum systems.
It has been suggested that the Rovuma Delta Basin is geologically analogous to some of the great delta systems being developed today, such as the Niger Delta, Mahakam Delta and the Gulf of Mexico.

Rovuma Basin Concessions

  • Sasol Petroleum International is exploiting the Temane Gas Field and the first gas was put into the gas transmission pipeline at the central processing facility on the Feb 18, 2004 and delivered to Sasol's Secunda plant in South Africa on the February 21, 2004. A total of 2,618,894,658 Nm3 of gas and 619,440 bbls of condensate were produced up to August 2005.
Principal Area of Operation

  • In February 2005, Mozambique launched its second offshore licensing round for blocks in the northern Rovuma basin.
  • Norsk Hydro has been awarded offshore Areas 2 and 5 in May, 2006.
  • In June 2005, the Mozambican Empresa Nacional de Hidrocarbonetos (ENH) and the South African petrochemical company Sasol signed an agreement with the Mozambican government for Blocks 16 and 19 off the southern coast of Mozambique. Seismic studies and exploratory drilling on the blocks are expected to cost $7 million.
  • PETRONAS has been awarded offshore Areas 3 and 6.
  • Eni SpA has been awarded Area 4, located in the deep waters of the Rovuma Basin, covering an area of 17,646 square km and at a water depth of 2,600 metres.

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