https://www.engineeringnews.co.za

Mozambique finalises block 5 oil deals with multinational firms

8th August 2018

By: Reuters

  

Font size: - +

Mozambique's government on Tuesday approved contracts giving exclusive rights to energy companies to act on concessions awarded to them to explore for oil following four years of negotiations and delays that threatened to derail the projects.

Cabinet spokesperson Ana Comoana said the companies could now go ahead with mining operations to tap offshore oil reserves that experts say are enough to supply energy to Britain, France, Germany and Italy for over 20 years.

Mozambique is desperate to plug gaps in government revenue after the International Monetary Fund (IMF) cancelled funding in 2016 citing concerns about how $2-billion in loans was spent.

"The contracts give the concessionaires exclusive rights to conduct oil operations with the aim to produce oil from the natural resources deposits underneath the areas," Comoana said following a cabinet meeting.

Norwegian company Statoil, Italy's Eni, Exxon Mobil , Delonex Energy, South Africa's Sasol and Mozambique's national oil and gas company ENH were awarded the exploration rights in the area of Mozambique's Northern Zambezi basin, known as block 5, in 2015.

Statoil - now known as Equinor - quit negotiations in January while Delonex this year withdrew from its concession over the deadlock with government.

More than $30-billion is expected to be invested in Mozambique's natural gas sector to build capacity to produce 20-million tonnes a year of LNG, with the first exports due to start in 2021.

Edited by Reuters

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Aluminium Federation of South Africa
Aluminium Federation of South Africa

The Aluminium Federation of South Africa (AFSA), is the voice of the South African aluminium industry.

VISIT SHOWROOM 
Rittal
Rittal

Rittal is a world leading provider of top-quality integrated systems for enclosures, power distribution, climate control, IT infrastructure and...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.052 0.836s - 142pq - 2rq
Subscribe Now