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INP signs six contracts with CNOOC, Eni

MOZAMBIQUE MOZAMBIQUE’S National Petroleum Insti- demonstrated that Mozambique remained an
tute (INP) has signed contracts for six of the attractive investment destination, despite the
offshore blocks included in the country’s sixth economic slowdown arising from the coronavi-
licensing round, awarding one block to Italy’s rus (COVID-19) pandemic.
Eni and five blocks to a subsidiary of China CNOOC is a relative newcomer to Mozam-
National Offshore Operating Corp. (CNOOC). bique’s hydrocarbon sector, although it is not
INP announced the signings in the last week the first state-owned Chinese major to enter
of December, saying that Eni had finalised a the southeast African country. China National
contract for A6-C, located in the Angoche basin Petroleum Corp. (CNPC) is a member of
offshore Nampula Province. It also confirmed both the Coral South LNG and Rovuma LNG
that CNOOC Hong Kong had finalised con- consortia.
tracts for A6-D, A6-E and A6-G in the Angoche Eni, meanwhile, is the leader of the Coral
basin, along with S6-A and S-6B in the hereto- South LNG consortium, which exported its first
fore unexplored Save basin offshore Inhambane cargo last November. ™
Province. (The latter two blocks are near the
mouth of the Save river.)
The two companies have pledged to invest at
least $370mn in the blocks during the explora-
tion phases of their contracts, INP noted. They
have also said they will drill at least four deepwa-
ter exploration wells, it said.
The institute did not reveal whether the con-
tracts had preserved the investors’ initial offers
with respect to division of equity in the assets
with Empresa Nacional de Hidrocarbonetos
(ENH), Mozambique’s national oil company
(NOC).
According to previous reports, Eni had said
last November, when the results of the auctions
were announced, that it was willing to operate
A6-C and retain a 60% stake in the block while
reserving 40% of equity for ENH. At the same
time, CNOOC stated that it was ready to serve as
operator of the remaining five blocks and retain
majority stakes of 70%, 77.5%, 77.5%, 80% and
79.5% respectively in S6-A, S-6B, A6-D, A6-E
and A6-G, leaving stakes of 30%, 22.5%, 22.5%,
20% and 20.5% for ENH respectively.
INP did not comment on the fact that the
sixth licensing round also included 10 blocks
that had failed to attract any bids at all – specifi-
cally, two licence areas in the Zambezi basin, two
blocks in the Angoche basin, and six blocks in
the Rovuma basin. Indeed, it asserted that the
signing of the contracts with CNOOC and Eni Only six of the 16 blocks included in the bidding round drew offers (Image: INP)

PERFORMANCE
Algeria’s gas exports up to 56 bcm in 2022

ALGERIA ALGERIA’S natural gas exports surged to 56bn The state-run energy group Sonatrach has a
cubic metres in 2022, and volumes are expected plan to double its gas production to 100 bcm for
to increase in 2023, the North African country’s export from 2023. The country currently pro-
Ministry of Energy and Mines said on Decem- duces 102 bcm of gas annually, half of which is
ber 30. consumed by the local market.

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