- Africa Energy: Zimbabwe Mnangagwa's Cabinet meeting disrupted by power cuts
- Africa Mining: "Increased urgency to improve SA mine health, safety" – Mineral Resources Minister
- Africa Energy: AfDB to provide €229m for Rwanda electricity programme
- Mozambique Mining: Indian Sol Mineração to start coal exploration by 2019
- Global Markets: Oil Traders Said to Mull Nigerian Proposal to Prolong Fuels Swap
The Council of Ministers on Tuesday approved oil and gas exploration and production contracts in five offshore areas and one onshore in four provinces.
The areas are A5-A; A5-B; Z5-D, all located in the Offshore area of Angoche, Nampula province; the Z5 – C area, located in the Zambezi Delta, which comprises the provinces of Sofala and Zambézia, and the PT5 – C (Offshore) and Mazenga (Onshore) areas, located in the province of Inhambane.
The National Hydrocarbons Company (ENH), a representative of the Mozambican State, participates in all areas concessioned in partnership with foreign multinationals, except in the Mazenga area, where, according to data contained in the communiqué issued by the Council of Ministers, this Tuesday at the end of the 25th regular session, participates alone.
Among the oil and gas multinationals entering the prospecting race, the Texas-based oil giant Exxon Mobil participates in four of the six new areas, which implies that it will be the one with the most investments in the country.
The contracts that have been signed today are for eight years and can be extended for 30 years in case of commercial discoveries.
The Government estimates $825 million worth of investments over the eight years of the initial research and prospecting phase, which corresponds to a minimum annual investment of $ 100 million.
According to the terms defined by the government, concessionaires should privilege, in their activities, whenever possible, domestic companies and products.
“One of the aspects foreseen in these contracts is the obligation to involve national companies in the provision of services; the preference of national products when comparable in terms of price and quality, “explained Ana Comoana, spokeswoman for the Council of Ministers.
Another requirement imposed in the contracts is the “launching of public tenders for the acquisition of goods and services, when the amount exceeds 80 million dollars.” source: O Pais
With projects in the new areas, “it is expected that more jobs, more technical training, more involvement of national companies, especially Small and Medium Enterprises, but also the production bonus and revenues,” said Comoana.