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    Eni, CNOOC submit bids in Mozambique’s 6th licensing round

Summary

The announcement of the results is expected to take place by December 30.

by: Shardul Sharma

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Natural Gas & LNG News, Africa, Security of Supply, Corporate, Political, Licensing rounds, News By Country, Mozambique

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Eni, CNOOC submit bids in Mozambique’s 6th licensing round

Italy’s Eni and Chinese state-run energy company CNOOC have submitted proposals to explore areas under Mozambique’s 6th licensing round, the country’s upstream regulator INP said on November 11. 

Eni Mozambico has bid for the area A6-C, in Angoche, and CNOOC Hong Kong Holding for the areas S6-A, A6-G, A6-D, S6-B and A6-E, located in Angoche and Save, respectively.

“It should be noted that the two companies propose to form a partnership with Mozambique’s National Oil Company, namely Empresa Nacional de Hidrocarbonetos, E.P (ENH),” INP said.

If the bids are successful, it has been proposed that for A6-C, ENI would be the operator with 60% interest and ENH will hold 40% interest. For S6-A, it is proposed that CNOOC will be the operator with a 70% stake and ENH will have the 30% interest.

For licence A6-G, CNOOC would be the operator with 79.5% interest and ENH would hold 20.5%. Licence A6-D would be operated by CNOOC with 77.5% interest while ENH would have 22.5% interest. For S6-B, CNOOC would be the operator with 77.5% interest and ENH would own 22.5%. For A6-E, CNOOC would be the operator with 80% interest and ENH would own 20%.

The deadline for submission of proposals ended on November 11 and the announcement of the results is expected to take place by December 30, INP said. Mozambique’s 6th licensing round offered 16 new blocks with five of these located in the offshore Rovuma Basin; seven in Angoche; two in the Zambezi Delta; and two in Save. 

In April, INP named six companies that could bid as operators and six as non-operators. Along with Eni and CNOOC, China's Sinopec, ExxonMobil, PetroChina and France's TotalEnergies could have bid as operators. 

Recently, Mozambique shipped its first cargo of LNG. Eni on November 13 announced that the first shipment of LNG produced from the Coral gas field, offshore Mozambique, departed from Coral Sul floating LNG (FLNG) facility. 

In October 2016, BP signed a long-term offtake contract for the purchase of 100% of LNG output from the facility. 

 

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