Name and Location
Búzi block hydrocarbon project, Mozambique.

Project Description
The project will involve prospecting and exploiting for hydrocarbons, particularly natural gas in the Búzi block, in the central Sofala province. The 10 300-km² development area is located onshore, in the central part of the Mozambican basin. The block is also bordered by the Pande, Temane and Inhassoro gasfields in the south. The undeveloped Búzi gas discovery block lies 27 km in south-western Beira.

Prospecting will include the drilling of two wells to assess the hydrocarbon deposits for commercial purposes. Studies undertaken in the 1960s have indicated the existence of small quantities of natural gas, and current surveys are designed to reassess its commercial viability.

Value
The developers will invest $30-million in exploration activities.

Duration
The project is expected to last for a period of eight years.

Client
PT Kalila Production, a subsidiary of PT Kalila Energy, represented by its wholly owned Buzi Hydrocarbons, in partnership with State-owned Empresa Nacional de Hidrocarbonetos de Moçambique (ENH).

Key Contracts and Suppliers
None stated.

Latest Developments
Buzi Hydrocarbons expects to start prospecting for natural gas in the Búzi block before the end of September 2010. The company submitted the relevant environmental-impact studies to the Ministry for Coordination of Environmental Affairs, and expects to start with a number of field operations, such as seismic surveys, subject to approval from the State.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
ENH, tel +258 21 43 0482 or fax +258 21 32 4808.