Category Archives: Mozambique

Mozambique, officially the Republic of Mozambique, is a country in southeastern Africa bordered by the Indian Ocean to the east, Tanzania to the north, Malawi and Zambia to the northwest, Zimbabwe to the west and Swaziland and South Africa to the southwest. The capital city is Maputo, formerly known as Lourenço Marques.

Anadarko’s First Flow Test Offshore Mozambique Successful

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Anadarko Petroleum Corporation today announced the results of its first flow test offshore Mozambique. The Barquentine-2 well flowed at an equipment-constrained rate of 90 to 100 million cubic feet per day (MMcf/d), with minimal pressure drawdown, providing confidence in well designs that are capable of 100 to 200 MMcf/d.

“The test at Barquentine-2 exhibited exceptional flow characteristics, confirmed the deliverability of this reservoir and indicated a low density of development wells may be sufficient to produce the reservoir,” Anadarko Sr. Vice President, Worldwide Exploration, Bob Daniels said. “Using pre-set gauges in an offset well, we were able to confirm connectivity and reservoir continuity over a distance of more than 3 kilometers. The test also proves the reservoir has very high permeability, meeting the quality specifications for the partnership’s LNG development plans. This is a very encouraging way to start our testing program, which is an important component in the reserve certification process, as we focus on achieving FID (final investment decision) around the end of 2013.”

The Barquentine-2 well is located in water depths of approximately 5,400 feet (1,650 meters) in the Offshore Area 1 of the Rovuma Basin. The drillstem test was conducted by the Deepwater Millennium drillship, which is expected to be mobilized to the Barquentine-1 location for a second flow and interference test in the complex. The 2012 testing program also includes drillstem tests in the Lagosta and Camarao areas to the south of Barquentine.

Anadarko is the operator of the 2.6-million-acre Offshore Area 1 with a 36.5-percent working interest. Co-owners in the area are Mitsui E&P Mozambique Area 1, Limited (20 percent), BPRL Ventures Mozambique B.V. (10 percent), Videocon Mozambique Rovuma 1 Limited (10 percent) and Cove Energy Mozambique Rovuma Offshore, Ltd. (8.5 percent). Empresa Nacional de Hidrocarbonetos, E.P.’s 15-percent interest is carried through the exploration phase.

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UK: Shell Tables USD 1.56 bln Bid for Cove

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Shell’s subsidiary, Shell Bidco has placed a bid £992.4 million (USD 1.56 billion) to acquire the entire issued and to be issued share capital of UK headquartered Cove Energy.

The bid comes one month after the decision announced by Cove to conduct a formal sale process for the company. Shell Bidco is a participant in the formal sale process and, as a result of such participation, Shell Bidco and Cove are near agreement on the full terms and conditions of a recommended cash offer by Shell Bidco for Cove. According to the report on Cove Energy’s website, Shell will pay 195 pence for each Cove share.

Still, the making of the Firm Intention Announcement is subject to, and conditional upon, the receipt of written consent of the Republic of Mozambique’s Minister of Mineral Resources which is related to Cove’s 8.5 per cent  participating interest in the Mozambique Rovuma Offshore Area 1 Block (the “Rovuma Area 1 Interest”),

Cove to assist with approvals

East Africa focused Cove has agreed, for as long as the Board of Cove expects to recommend the Proposed Offer, to assist Shell Bidco in relation to obtaining any required governmental consents, including the Mozambique Consent, as soon as reasonably practicable after the release of this announcement.

Shell’s decision to announce this Proposed Offer for Cove fits with Shell’s strategic aim to drive forward with its investment programme, to deliver sustainable growth and to provide competitive returns to shareholders.

East Africa is a major prospective hydrocarbon province, which has seen a significant increase in exploration activity in recent years. Shell already has interests in Tanzania, and the acquisition of Cove would mark Shell’s entry into exciting new hydrocarbon provinces in Kenya and Mozambique, with significant potential for new LNG from recent gas discoveries offshore Mozambique, and further complementary exploration positions in East Africa. In Mozambique, the Rovuma offshore basin is a frontier exploration area that holds large resources of natural gas reserves, suitable for LNG projects. According to Cove, the play represents the potential for 30+ tcf and 6 LNG trains.

Mozambique prosperity

Shell understands that bringing these resources on stream is a strategic priority for the Mozambican Government in order to foster further economic and community development in the country, and Shell is committed to being a partner in that process,” said Shell in a statement.

Shell is one of the world’s largest LNG producers, with one of the most diverse LNG portfolios and access to strategic global markets with equity sales volumes of 18.83 mtpa of LNG in 2011. Shell holds the largest equity share of LNG capacity among IOCs – currently holding some 20.5 mtpa of equity LNG capacity on-stream. Adding Cove’s assets to Shell’s portfolio would strengthen and further diversify Shell’s existing global LNG portfolio of production and development projects. Furthermore, Shell has set industry records for LNG plant construction times and operational start-ups, safely delivering projects from concept to first production for/with its partners. In joint ventures with partners, Shell currently produces LNG in Australia, Brunei, Malaysia, Nigeria, Oman, Russia and Qatar, with excellent production reliability performance achieved at all these plants.

In addition to Shell’s technical expertise, its marketing and shipping know-how is designed to enable the delivery of long-term added value together with project partners. Shell has access to the key LNG markets of Europe, Asia Pacific and  North America. In 2011, Shell joint ventures supplied more than 30 per cent. of global LNG volumes. Shell would also bring its extensive project finance experience across the LNG value chain. Shell’s experience in LNG project finance extends over many projects, e.g.: Oman LNG, Nigeria LNG, Qatargas 4, Sakhalin.

Shell management said it was confident that its innovative technologies, leading plant designs, unmatched LNG operational experience and proven commercialisation strategies, combined with the experience of the operator of the Mozambique Rovuma Offshore Area 1 Block and the joint venture partners can add significant value to the project.

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Anadarko Strikes More Mozambique Gas

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Anadarko Petroleum Corporation today said that its latest appraisal well offshore Mozambique, Lagosta-3, encountered approximately 577 total net feet (176 meters) of natural gas pay in multiple zones.

The partnership’s successful appraisal drilling continues to confirm and expand the world-class nature of this massive natural gas accumulation offshore Mozambique,” said Bob Daniels, Anadarko Sr. Vice President, Worldwide Exploration. “The Lagosta-3 well encountered high-quality sands and successfully confirmed an area of the field that was not as well-imaged in our seismic data due to overlying faulting. Additionally, we continue to accelerate our operational learning curve, safely drilling the last two wells faster and more cost effectively than the preceding wells. We expect these drilling-efficiency improvements to translate into significant cost savings over time, as we continue to advance the project.”

The Lagosta-3 well is located about 2 miles (3 kilometers) west of the Lagosta-1 discovery well and 9 miles (15 kilometers) south of the Camarao-1 well. It was drilled to a total depth of approximately 13,715 feet (4,180 meters) in water depths of approximately 4,606 feet (1,404 meters) and will be suspended while the rig is mobilized to drill the Barquentine-4 appraisal well. Anadarko has two deepwater drillships operating in the discovery area offshore Mozambique, the second of which is now on location at the Barquentine-2 well preparing for drillstem testing.

Anadarko and its partners are now advancing a commercial liquefied natural gas (LNG) development in Mozambique that is initially expected to consist of at least two 5-million-tonne-per-annum liquefaction trains.

Anadarko is the operator of the 2.6-million-acre Offshore Area 1 with a 36.5-percent working interest. Co-owners in the area are Mitsui E&P Mozambique Area 1, Limited (20 percent), BPRL Ventures Mozambique B.V. (10 percent), Videocon Mozambique Rovuma 1 Limited (10 percent) and Cove Energy Mozambique Rovuma Offshore, Ltd. (8.5 percent). Empresa Nacional de Hidrocarbonetos, E.P.’s 15-percent interest is carried through the exploration phase.

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Eni Reports Another Giant Gas Discovery Offshore Mozambique

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Eni announces a new giant natural gas discovery at the Mamba North 1 prospect, in Area 4 Offshore Mozambique, encountering a mineral potential of 212.5 billion cubic meters (7.5 tcf) of gas in place.

This new discovery, in addition to the Mamba South discovery from October 2011, further increases the potential of the Mamba complex in the Area 4. It is estimated that the total volume of gas in place reaches now about 850 billion cubic meters (30 tcf).

The Mamba North 1 discovery, located in water depths of 1,690 meters, reaches a total depth of 5,330 meters and is located approximately 23 Km north of Mamba South 1 discovery and 45 Km off the Capo Delgado coast. The discovery well encountered a total of 186 meters of gas pay in multiple high-quality Oligocene and Paleocene sands.

During the production test, the first performed at offshore Rovuma, the well produced high quality gas with flow rates, constrained by surface facilities, of about 1 million cubic meters a day and minor volumes of condensates. In a final production completion configuration, estimated gas production per well is expected to reach over 4 million cubic meters a day.

During 2012, Eni plans to drill at least other five wells in nearby structures to assess the upside potential of Mamba Compex.

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Another Success Offshore Mozambique for Anadarko

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Anadarko​ today announced its seventh well in the discovery area offshore Mozambique successfully appraised previous discoveries at Lagosta and Camarao.

The Lagosta-2 appraisal well, located about 4.4 miles (7 kilometers) north of the Lagosta discovery and 5.3 miles (8.5 kilometers) south of the Camarao well, encountered 777 total net feet (237 meters) of natural gas pay in multiple zones.

“This is the largest pay count of any well in the complex to date, and it seems fitting that our seventh successful well in the discovery area would encounter 777 net feet of pay,” said Bob Daniels, Anadarko Sr. Vice President, Worldwide Exploration.

“These excellent results continue to support our recoverable resource estimates of 15 to 30-plus Tcf (trillion cubic feet) of natural gas in the discovery area on our block, as well as provide additional information that will be incorporated into our models to help determine the optimal subsea development plans for the complex. In addition, a second deepwater drillship, the Deepwater Millennium, has arrived in Mozambique to begin an accelerated testing program that will include installing observation gauges and conducting several drillstem tests, as we remain on track to reach a final investment decision for this project in 2013.”

The Lagosta-2 appraisal well was drilled to a total depth of approximately 14,223 feet (4,335 meters) in water depths of approximately 4,813 feet (1,467 meters) in the Offshore Area 1 of the Rovuma Basin. The partnership plans to preserve the Lagosta-2 well for future utilization during its planned drillstem testing program in the Windjammer, Barquentine and Lagosta complex. Once operations are complete, the Belford Dolphin deepwater drillship will be mobilized to drill the Lagosta-3 appraisal well.

Anadarko is the operator of the 2.6-million-acre Offshore Area 1 with a 36.5-percent working interest. Co-owners in the area are Mitsui E&P Mozambique Area 1, Limited (20 percent), BPRL Ventures Mozambique B.V. (10 percent), Videocon Mozambique Rovuma 1 Limited (10 percent) and Cove Energy Mozambique Rovuma Offshore, Ltd. (8.5 percent). Empresa Nacional de Hidrocarbonetos, E.P.’s 15-percent interest is carried through the exploration phase.

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