Eni-led consortium plans to invest more than US$280 million

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Eni-led consortium plans to invest more than US$280 million

1:44 CAT | 18 Oct 2018

Photo: Lusa

Following North American giant Exxon Mobil, on Wednesday it was the turn of Italy’s Eni and South Africa’s Sasol to sign concession contracts for oil and natural gas exploration in three blocks with the Maputo government.

The signing of contracts with a consortium formed by the two oil companies to explore two blocks in Temane and Pande, in Inhambane province, marks the end of four years of negotiations between the multinationals and the government.

“With these contracts, all the conditions for the start of exploration of hydrocarbons in the areas PT-5C and A5-A have been met, with minimum investments of US$203 million from Eni and US$80 million from Sasol,” Minister of Mineral Resources and Energy Max Tonela said.

These investments will be made over a period of eight years, the deadline set by the Mozambican oil legislation for the exploration phase, renewable up to a maximum of 30 years.

At the signing of the contracts, Stefano Carbonara, the director of Eni, which was awarded a block in Angoche and leads the consortium in the Temane and Pande blocks, highlighted his company’s strong presence in Mozambique, which began in 2006 with the acquisition of a stake in the Area 4 block in the Rovuma Basin, Cabo Delgado province.

“This contract reinforces Eni’s presence in Mozambique, a country of strategic importance for the company,” Carbonara said.

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Sasol Executive Vice President for upstream operations, Jon Harris praised the role of the Mozambican leadership in the long negotiations. “We believe we can further consolidate this partnership,” he said. “What is important is to continue to build and develop Mozambican people and for companies to hold meaningful and fruitful partnerships for the mutual benefit of all those involved,” he added

The government had expected to see a minimum investment of US$900 million from the oil companies awarded blocks in the 5th oil and gas tender round, but with the withdrawal of Delonex Energy ltd, which had been awarded a block in Palmeiras, Maputo province, projections were revised downwards.

“The company chose to invest in another country. We do not know the real reason for its withdrawal,” Carlos Zacarias, President of the Board of Directors of the National Petroleum Institute (INP), said.

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