American energy major ExxonMobil can begin exploring for oil in northern and central Mozambique following yesterday’s signing of concession agreements with the Mozambican government. Exxon’s exploration will be conducted in Nampula province, offshore Angoche, and in the Zambezi Delta offshore central Mozambique.
Accoriding to reports by @Verdade newspaper, the Director of ExxonMobil Mozambique thanked “the valuable contribution of the Bank of Mozambique” for the signing of the Concession Contract Research and Production in the Zambezi Delta and Angoche, signed between the US company, the Russian Rosneft Company national Hydrocarbons (ENH) and the national Oil Institute (INP). It also found that in addition to various incentives, which begin in fiscal stability for 30 years , multinationals forced exchange standards and special procedures.
“Today we celebrate a milestone for the Mozambique oil and gas industry, the signing of these concession contracts for research and production of hydrocarbons in the Zambezi Blocks and Angoche resulting from 5th Tender”, Jos Evens said.
The Director of ExxonMobil Mozambique said the US company hopes to use its “global experience, along with knowledge of the INP and ENH to analyze these blocks. We want to be in a position to start a drilling campaign in the coming years and be ready to participate in the 6th public tender. I also hope to return soon to celebrate commercial discoveries of these blocks. “
ExxonMobil, Rosneft and ENH now have eight years to drill and in the event of commercial discovery of oil, the concession will be extended to another 30 years during which the development phase will occur, after approval of a development plan by the Mozambican state.
Jos Evens finished his welcoming speech: “We would not have reached this milestone without the hard work and commitment of the INP’s negotiating team, as well as the valuable contribution of the Bank of Mozambique for this process.”
In addition to the three contracts yesterday, there are two more to be signed in the next few days with Eni and Sasol, leaders of the consortium that won the tender for the offshore survey Angoche area A5 and offshore Pande and Temane area PT5-C . Together, the five contracts, already approved by the Mozambican government, will bring in investment of at least $900 million, according to commitments made in the original competition in 2015.