Mozambique issues international tender for oil and gas exploration

14 Oct 2009

DNO Inhaminga block

Mozambique has issued an international tender for oil and gas exploration in the central province of Sofala, the state-run daily newspaper Noticias has reported. The paper said the search for hydrocarbons, including oil and natural gas, in the Inhaminga block would cover the districts of Cheringoma, Caia Park and Maringue and that the winning bidder would be announced in December. It said the bidder would acquire 600 sq kms of 2D seismic areas and would have to start drilling wells early in 2010 under the supervision of a Norwegian multinational company, which was not named.

Mozambique has major proven gas reserves, but does not have the technical and financial capacity to exploit them. Gas was discovered in Mozambique in 1962, when Gulf Oil drilled a successful well in the Pande field in the southern province of Inhambane, but 17 years of crippling war which ended in 1992 had prevented further investment. DNO International has an 80% interest in the Inhaminga block, which covers an area of 21,400 sq kms and is located some 200 kms from Sasol’s development of the Pande and Temane gas fields. DNO is the operator of the block and has established an operations office in the city of Beira, close to the area of operations.

DNO may drill two more test wells as part of its oil and gas surveys in the Inhaminga block, a source from Mozambique's National Oil Institute (INP) has told reporters this week. Three wells have so far been drilled in the Inhaminga oil block since DNO was granted the concession, although the source gave no details of investments made so far. 'They are working in the field, they are carrying out the seismic survey and based on that they may drill two more wells,' the source has said. The first two wells, according to the source, provided negative results and, currently findings from the third well are under analysis. The Inhaminga block, located in the central province of Sofala, is made up of a vast area that includes the districts of Cheringoma, Caia, Gorongosa and Marínguè.

No one from Mozambique's hydrocarbons agency, ENH, was immediately available for comment and DNO did not have an immediate comment to make about the tender.

Source: DNO & Macauhub