Moz to issue more oil licences

By: CHARLES MANGWIRO

MAPUTO - Mozambique is preparing to issue companies more licences for oil and gas exploration in the southern African nation's prized Rovuma Basin, a senior official said yesterday.

"We will launch another round of tenders for more licences as early

as 2008," Arsenio Mabote, director of the National Oil Institute,

said in an interview.

"Right now we are waiting for environmental assessment reports,

which we have ordered."

 

Mabote said it was not yet clear how many licences would be

issued, but he added that they would cover both onshore and

offshore exploration in the Rovuma basin, which lies on the border

of Mozambique and Tanzania.

 

A group of international oil and gas firms have signed deals

worth about US$300 million to prospect in the area, which has been

divided into seven exploration blocs by the government.

 

Mozambique, which has relaxed foreign investment restrictions

since emerging from a 17-year civil war in 1992, is keen to boost

oil and gas exploration as part of an effort to diversify its

largely agriculture-based economy.

 

Although exploration in the Rovuma Basin in the past two decades

has yet to yield any major oil discoveries, it has indicated the

presence of significant amounts of natural gas.

 

Most of the drilling has been offshore.

 

Canada's Oslo-listed Artumas Group Inc, US-based oil firm

Anadarko Petroleum Corp, Petronas of Malaysia and Italy's ENI are

among the firms active in the basin.

 

Oil majors in the past have concentrated on western and

southwestern Africa, but they increasingly are seeking

opportunities in new areas in eastern and southern Africa, partly

spurred by high global oil prices.

 

Nampa-Reuters

 

"Right now we are waiting for environmental assessment reports,

which we have ordered."Mabote said it was not yet clear how many

licences would be issued, but he added that they would cover both

onshore and offshore exploration in the Rovuma basin, which lies on

the border of Mozambique and Tanzania.A group of international oil

and gas firms have signed deals worth about US$300 million to

prospect in the area, which has been divided into seven exploration

blocs by the government.Mozambique, which has relaxed foreign

investment restrictions since emerging from a 17-year civil war in

1992, is keen to boost oil and gas exploration as part of an effort

to diversify its largely agriculture-based economy.Although

exploration in the Rovuma Basin in the past two decades has yet to

yield any major oil discoveries, it has indicated the presence of

significant amounts of natural gas.Most of the drilling has been

offshore.Canada's Oslo-listed Artumas Group Inc, US-based oil firm

Anadarko Petroleum Corp, Petronas of Malaysia and Italy's ENI are

among the firms active in the basin.Oil majors in the past have

concentrated on western and southwestern Africa, but they

increasingly are seeking opportunities in new areas in eastern and

southern Africa, partly spurred by high global oil

prices.Nampa-Reuters

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