Mozambique’s government has awarded six oil and gas exploration licences in a bid to gain US$700 million in investments over the next four years.
Three licences for offshore blocks have been awarded to Exxon Mobil Corp, in partnership with Rosneft OAO, and a consortium led by Eni SpA that includes Sasol Ltd and Statoil ASA, reported Bloomberg news agency. The offshore rights were given to Sasol and Delonex Energy Ltd, working with India Oil Corp.
"The exploration programmes proposed for the next four years have the potential to see investments of up to around US$700 million, with the opening of a minimum of 10 wells, of which eight will be in deep water," said the National Petroleum Institute in a statement.
Mozambique is hoping the exploits will help turn the country into the world’s third-biggest liquefied natural gas exporter within the decade.
While the development costs are likely to be high, the market for liquefied natural gas is strong – especially in East Asia, according to a report by the Royal Institute of International Affairs.
