Petronas to Begin Exploration Offshore Mozambique in 2004

Petronas is slated to begin exploration operations offshore Mozambique in the Zambezi Delta in early 2004. The data collection and field research is almost complete. Petronas signed an agreement in 2002 with the Mozambican Hydro-Carbonate Company, (ENH) that involves an investment of $40 million, of which the Mozambican state is to provide 15 percent with an option to increase its participation to 20 percent.

Petronas has the exploration permit for a period of seven years. The company is expected to invest about $10 million dollars in geological and geophysical assessment and analysis in the first three years. It will also have access to earlier studies of the potential of the Zambezi delta. Previous seismic studies suggest that the conditions for oil exists in the Zambezi delta area. ENH suggests that the known natural gas fields in southern province of Inhambane at Pande, Temane and Buzi are geologically linked to the supposed deposits under the delta.