The Institute of National Petroleum of Mozambique (INP) has awarded four blocks offshore Mozambique to oil majors ExxonMobil, Rosneft and Eni in a fifth competitive bidding round for Exploration and Production Concession Contracts.
The fifth round started on October 23, 2014 and companies had nine months to evaluate the available technical data and formulate their applications.
The round followed a competitive bid process that evaluated the bids on defined published criteria which included Health Safety and Environmental (HSE), financial strength, technical competence / capability and the Economic terms offered to the Mozambican State.
A total of fifteen Areas were included from within offshore Rovuma, offshore Angoche, offshore Zambezi, onshore Pande-Temane and onshore Palmeira covering approximately 74,259 sq kms. Bids were received from potential Operators for eight of the fifteen areas on offer.
The INP decided to award the partnership of Rosneft and ExxonMobil three contract areas in total, Z5-C and Z5-D in the Zambezi Delta and A5-B in the Angoche Basin, while Eni was awarded Area A5-A, also in the Angoche basin.
According to Rosneft, once the negotiations with the Government of the Republic of Mozambique and INP on the detailed terms of participation have been completed, ExxonMobil will become the operator of the awarded three blocks.
INP says that the First Period of Exploration over the following 4 years will see these companies spend over 691 Million USD, drilling a minimum of 10 wells (8 in deep water), acquisition of over 3,000 km of 2D seismic, acquisition of over 18,400 km2 of 3D seismic (some potentially linked to new multi-client programs), 10,000 km2 of FTG (Full Tensor Gravity), high resolution magnetics programs and other geotechnical studies.