petronas signs exploration contract for offshore blocks in mozambique

Petronas Signs Exploration Contract For Offshore Blocks in Mozambique

10-14-2008

Petronas, together with Empresa Nacional de Hidrocarbonetos de Moçambique (ENH), the national oil company of Mozambique, has been awarded the exploration and production concession contract (EPCC) for two exploration blocks by the Government of Mozambique.

The EPCC for offshore Blocks 3 and 6 was signed by Petronas' wholly-owned subsidiary PC Mozambique (Rovuma Basin) Ltd (PCMRB) with ENH and the Government of Mozambique. Under the terms of the EPCC, PCMRB will hold a 90% interest in both Blocks, which are located in the Rovuma Basin, while ENH will own the remaining 10% interest.

PCMRB has been designated the operator for the Blocks.During the first phase of the exploration period, PCMRB will reprocess 150 line-kilometers of 2D seismic data and acquire 7,000 line-kilometers of 2D seismic data and 120 samples of geo-chem cores. In the initial three years, the contractor is committed to spend US $5.6 million for the Blocks' geological and geophysical evaluation.

Petronas first entered Mozambique's upstream oil and gas industry when it was awarded a contract for offshore Zambezi Delta Block in June 2002. The signing of the latest EPCC marks yet another milestone for Petronas in Mozambique and its expanding exploration activities in Africa.

The EPCC was signed in Pemba, Mozambique. Petronas was represented by its Vice President Datuk Abdullah Karim, who is also the Managing Director and Chief Executive Officer of Petronas Carigali Sdn. Bhd. The Mozambique government was represented by its Minister of Mineral and Resources, Mme. Esperanca Bias, while ENH was represented by its President, Nelson Ocuane.