Moz to issue more oil licences

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