The government has approved the decree that establishes the terms of the oil exploration and production concession contract for the Save offshore area, involving the National Hydrocarbons Company and a Chinese multinational.

The measure was announced by the spokesman for the Council of Ministers, Filimão Suazi, quoted by Rádio Moçambique. According to Suazi, this approval is part of the implementation of mineral resources policies and the strategy of granting hydrocarbon exploration and production areas.

In addition to the oil exploration concession, the Executive also approved the resolution ratifying the Millennium Challenge Compact II financing agreement for Mozambique, worth 500 million dollars.

These measures represent important advances for the country in the area of natural resources and economic development, demonstrating the government’s commitment to promoting the hydrocarbon sector and peace in the country.

Italian multinational oil company Eni plans to accelerate drilling, completion and cleaning activities for four hydrocarbon wells in Area 4 of the Rovuma Basin, in Cabo Delgado province.

In this context, the company announced that it is in the process of acquiring various materials that will be used to support Eni Rovuma Basin B.V.’s gas production development activities in Mozambique.

The Area 4 operator also said that drilling is expected to begin in the third quarter of next year, with the completion and testing of the wells possibly starting in the fourth quarter of 2025.

According to the company, two additional wells will also be drilled, completed and cleaned in the same Area 4 of the Rovuma Sedimentary Basin, in Cabo Delgado province.

According to the source, the contractor to be hired by the Italian oil company must open a local subsidiary in the country with administrative and operational management based in Maputo and a logistics base in Pemba, to support the drilling activities.

Eni also announced that in order to support the work it is also contracting integrated freight forwarding, maritime and customs clearance services for the delivery of materials and equipment in accordance with international and Mozambican legislation relevant to the oil and gas and bio-fuels industry.

Acting in the name of and on behalf of Mozambique Rovuma Venture, Eni Rovuma Basin B.V, Mozambique Branch of the Delegated Upstream Operator, is also contracting logistics services in Pemba in order to support the logistics activities of the Area 4 upstream operations.

The contract consists of providing logistics services on a call-out basis including, but not limited to, the supply of lifting equipment (mobile cranes, telescopic handlers, forklifts, among others), ground transportation, such as trucks with 40-foot trailers.

It will also provide manpower and services for cleaning ship tanks, third-party inspection and recertification and other additional services to continuously support the company’s operational activities, mainly in Pemba, Cabo Delgado province.

Sasol Mozambique PT5-C, Limitada (SMPT5-C) made a natural gas discovery, in sandstone rocks of Lower Grudja Formation age, after executing the Bonito-1 exploration well, in Area PT5-C, located in the southern part of the Inhassoro district, Inhambane Province, Mozambique Basin, whose boundaries cover an area of around 3142 km2, between the Pande and Temane fields.

The well was drilled between March 25 and April 5, 2023 and reached a depth of 1934 m MD, in Lower Cretaceous sediments (G-12 Horizon), and the discovery was confirmed through drilling mud log readings, chromatographic data, electrical diagraphs and modular dynamic tests (MDT).

The Bonito-1 well is the second to be drilled in the PT5-C area, since the first was negative, and falls within the scope of the contractual obligations established in the first exploration sub-period of the Concession Contract for Exploration and Production for the PT5-C Onshore Area, signed in October 2018, under the 5th Hydrocarbon Exploration and Production Concession Tender. SMPT5-C will continue to evaluate the deposit and its commercial viability.

The concessionaires for Area PT5-C are Sasol Mozambique PT5-C LTD, which holds a 70% participating interest, and Empresa Nacional de Hidrocarbonetos, E.P (ENH), with 30%.

The reserve is located in the “khometela” region, on the border between the districts of Inhassoro and Mabote. However, studies are still needed to determine the quantity and commercial value.

Mateus Mosse, Director of Corporate Relations at the company, said that if the results of the studies show that it is capable of exploitation, SASOL will extend the period of production and supply of natural resources.
“It will take around three years for studies to be carried out to determine whether the gas discovered is marketable or not. If it is marketable, SASOL will submit a development plan to be approved by the government. If the discovery in the PT-5C field guarantees production, there will probably be more years of production,” he said, quoted by Rádio Moçambique.

On the other hand, he predicted that by 2034 the company will stop exploiting Mozambican gas for South Africa, due to the end of the license granted for this purpose in 2024.
SASOL currently produces 197 Gigajoules of natural gas a year. The largest amount is exported to South Africa.
“What SASOL has to do is ensure that by 2034 it is producing that amount. So it has to drill some holes. According to the studies carried out, if there is a decline, additional boreholes must be drilled to maintain this production,” he explained, noting the need to ensure that commitments are met.