HomeIndustry SectorsGenerationHuge new natural gas discovery in Mozambique

Huge new natural gas discovery in Mozambique

Anadarko oil
wells strike success
off Mozambique
Maputo, Mozambique — ESI-AFRICA.COM — 07 October 2011 – Oil and gas company Anadarko Mozambique has announced there are natural gas reserves of more than 200 billion cubic metres in its Camarão test well in the Rovuma basin of Mozambique.

A statement from the National Oil Institute (INP) cited by Mozambican newspaper Notícias said that the new discovery could lead to two independent modules being set up to produce 5Mt of liquid natural gas (LNG) per year, as compared to just one module projected to tap offshore natural gas. This was a significant step in terms of economies of scale and costs.

The “Camarão” well was drilled to a depth of 3,850m and confirmed 73m of sands saturated with natural gas from the Oligocene and 43m of gas in sands from the Miocene period.

With a view to speeding up research activities underway in the Rovuma basin, the concession-holders of the area announced that a second survey ship would be used over the next 18 months for drilling and testing operations.

The concession-holders for the area are Anadarko Mozambique, a subsidiary of US company Anadarko Petroleum; Mozambican state oil and gas company Empresa Nacional de Hidrocarbonetos; Japan’s Mitsui; Videocon and Barat Petroleum, both from India; and Cove Energy, from the United Kingdom.

In the last few years Mozambique has been the focus of large companies investing in oil and gas research in several regions, notably the Rovuma basin. An estimated US$370 million was invested in 2009 and 2010 in activities of this kind in the area that covers the north of Nampula province and practically the entire coast of Cabo Delgado province.

Since the concession contract for block 1 was signed in 2007, Anadarko Petroleum has invested around US$750 million in prospecting and research, and six test wells have been drilled at sea and one on land. This resulted in natural gas being found in at least five at sea.