Total Farms-in on Petronas’ Rovuma Acreage

France’s Total has landed in Mozambique’s offshore bonanza, picking up a stake from Malaysia’s Petronas. The French firm is taking a 40% stake in Petronas’ acreage in the Rovuma Basin.

Total’s farm-in agreement with Petronas is for the PSC covering the offshore block Area 3 and Area 6 located in the prolific Rovuma Basin. Petronas will retain operatorship. The two blocks cover an area of 15,250 sq km with water depths ranging up to 2,500 meters. An exploration well is planned by year-end.

The value placed on the stake was not disclosed.

“After Kenya and Uganda, Total is entering into the southern part of the prolific Rovuma Basin, whose oil potential might equal the gas potential of the northern part,”said Jacques Marraud des Grottes, senior VP, Exploration & Production, Africa.“The farm-in significantly strengthens our long-term presence in exploration and production in East Africa. Exploration wells are expected to be drilled shortly.”

The transaction still requires the approval of the Mozambique government.