The Mozambican Executive has approved the concession contract for oil exploration and production in the Angoche A6-C Offshore Area. The contract involves Italian oil company ENI Moçambique, which will act as operator, and Empresa Nacional de Hidrocarbonetos (ENH).
The decision was taken during an ordinary meeting of the Council of Ministers. The concession gives the concessionaire the exclusive right to conduct oil operations with the aim of exploring and producing oil from the resources located in one or more underground deposits. In addition, the concession includes the non-exclusive right to build and operate infrastructures for the production and transportation of the oil produced, within the limits of the concession area, off the provinces of Nampula and Zambézia. However, this right can be adjusted if there is access to existing oil or gas pipeline systems under reasonable commercial terms.
According to information from Lusa, the decision follows the proposal presented by ENI, which submitted an application to explore areas made available in the sixth tender for the concession of areas for hydrocarbon exploration and production. ENI will be the operator with a 60% stake, while ENH will have a 40% stake.
Mozambique has the third largest natural gas reserves in Africa, estimated at 180 million cubic feet. The country is currently developing three approved projects to exploit the natural gas reserves in the Rovuma basin, one of the largest in the world, located off the coast of Cabo Delgado. Two of these projects are large-scale and involve channeling the gas from the seabed to land, where it will be liquefied for export by sea.
For the Council of Ministers, the approval of the oil concession in the Angoche A6-C Offshore Area represents a significant step forward for the hydrocarbon industry in Mozambique. The project promises to strengthen the country’s economy and increase its participation in the global energy market.
