Continental Focus, International Reach

Mozambique’s Block 5 Contracts Finalized

Thursday, August 9, 2018

The Mozambican government finalized contracts for access to Offshore Block 5 with a number of heavy hitting international oil firms. The award of the block and the finalization of the contracts follows four years of negotiations and delays that threatened to derail the projects with more than one of the firms bowing out over the four-year period.

Statoil, ENI, ExxonMobil, Delonex Energy, Sasol and the country’s national oil and gas company ENH were awarded the exploration rights in the area of Mozambique’s Zambezi Basin in 2015.

Statoil, now Equinor, quit negotiations in January while Delonex this year withdrew from its concession over the deadlock with government.

Cabinet spokeswoman Ana Comoana was cited in a Reuters report as saying that the companies could now go ahead with exploration operations in what is thought to be a very prolific block.

“The contracts give the concessionaires exclusive rights to conduct oil operations with the aim to produce oil from the natural resources deposits underneath the areas,” Comoana said following a cabinet meeting.