Anadarko Awarded 2.6 Million-Acre Exploration Block Offshore Mozambique

Anadarko Petroleum has been declared the winning bidder for exploration and production rights to Offshore Area 1 in Mozambique's second licensing round in the under-explored Rovuma Basin. Awarding of the block remains subject to finalization and signing of the exploration and production concession, expected by mid-year.

The 2.64 million-acre block, positioned in northeast Mozambique, includes approximately 90,000 onshore acres and stretches eastward 35 miles (56 kilometers) offshore, where water depths extend down to 6,000 feet (1,800 meters). The block's boundary borders Tanzania to the north and extends southward about 100 miles (160 kilometers).

"Offshore Area 1 is a ground-floor opportunity to explore the highly prospective Rovuma Basin, where only two wells have ever been drilled," said Bob Daniels, Anadarko senior vice president of exploration and production. "Anadarko has been actively working seismic, well and other geologic data from the Rovuma Delta for the past three years and has concluded that the basin is similar in nature to the proven world-class petroleum systems of the Niger Delta, Mahakam Delta, and the Gulf of Mexico."

Anadarko's bid included a four-year initial exploration term with options to extend that phase another four years, and a 30-year production term following any commercial discoveries. Anadarko was awarded the block on the basis of a work commitment to acquire new 2D and 3D seismic and drill seven wells during the initial exploration term. Anadarko will operate the block, initially with a 100 percent working interest.

"We are very pleased to gain this opportunity to explore for oil and gas in Mozambique," Daniels said. "Through our regional evaluation and analysis of existing seismic data covering most of the block, we have already identified multiple leads across an area equivalent in size to 460 typical Gulf of Mexico lease blocks."