Wentworth confirms closure of Mozambique operations

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Wentworth confirms closure of Mozambique operations

8:20 CAT | 19 Dec 2018

In file CoM

The London based company Wentworth Resources confirmed on Monday that it’s pulling out of oil and gas exploration in Mozambique.

This means that, as from 30 April this year, Wentworth will give up its 85 per cent stake in the Tembo onshore block in the Rovuma Basin, in the northern province of Cabo Delgado. The other 15 per cent in the block is held by Mozambique’s own National Hydrocarbon company (ENH).

In the third quarter of this year, Wentworth undertook a reappraisal of the reserves of gas found in the Tembo block. It concluded that the block contains gross volumes of 87 billion cubic feet of natural gas, of which 61 billion cubic feet is recoverable.

These figures are disappointingly low. Previous estimates had been over 260 billion cubic feet of gas. Wentworth reached the conclusion that exploiting the block was not commercially viable.

“We have now completed a thorough technical and commercial review of the company’s asset portfolio and determined that our Tembo asset does not provide us with suitable monetisation solutions in keeping with our material growth mandate”, according to the Chief Executive Officer Eskil Jersing, cited in a Wentworth release.

He praised ENH and the regulatory body, the National Petroleum Institute (INP), for their “excellent relations” with Wentworth and pledged to “work hard to ensure an efficient and smooth transition period for all stakeholders”.

Wentworth will end its operations in Cabo Delgado, and close its office in Maputo. Instead it will focus on the Mnazi Bay gas field in Tanzania, which is already in production.

Source: AIM