Exxon and Eni exploration contracts in Mozambique to be finalized

After being awarded blocks in the country’s fifth licensing round in 2015, oil and gas companies ExxonMobil and Eni are close to finalising their exploration contracts in Mozambique.

According to reports, the delay in the finalisation of the contracts was due to legislation and a new model for exploration and production concession contracts which are to be resolved by July of this year. “Once the contracts have been signed, ExxonMobil plans to drill two wells and Eni, at least one next year,” said Agostinho Rodrigues Chibielo, an official at Instituto Nacional de Petroleo’s exploration division to media at a conference in Ghana.

With natural gas projected to be the world’s fastest-growing major fuel source, this exploration prospect for Eni and Exxon comes as momentum for the resource builds in the country and internationally. “Important progress has been made and we look forward to concluding agreements with the government of Mozambique,”Eni told Bloomberg.

Mozambique has one of the largest proven natural gas reserves and is well-positioned to be an international LNG supplier.

Towards the end of 2017, ExxonMobil acquired Eni’s 25 percent interest in the natural gas rich Area 4 Rovuma Basin offshore Mozambique.