Tullow Joins Statoil in Mozambique

Tullow Oil has expanded its footprint in East Africa picking up a stake offshore Mozambique. The company farmed-in to one of Statoil’s licenses offshore the East African country, gaining a 25% interest.

"The farm-down reflects the attractiveness of Statoil's acreage in Mozambique and having Tullow onboard allows us to share the geological risk while retaining a significant working interest," Nick Maden, senior VP Exploration International for Statoil said.

The license Tullow joins Statoil on covers blocks 2 and 5 in Mozambique’s Rovuma Basin where notable discoveries have been made by Anadarko Petroleum and ENI.

Statoil retain a 65% stake in the license.

"Our presence in Mozambique is in line with Statoil's exploration strategy focusing on early access in a prolific region. Large gas discoveries have recently been made north of our acreage and the prospectivity for hydrocarbons in the Statoil operated blocks is promising," adds Maden.

ENH has waived its pre-emption right and approved the agreement.

The commercial terms of the transaction were not revealed, however Statoil did say that the government has granted approval subject to the Tax Authorities' opinion on applicable transaction taxes.

Statoil and Tullow are now preparing to spud the first well in the license which is scheduled for 2013.