Chinese Firm Strikes Oil E&P Deals with Mozambique

China’s footprint in the African energy sector continues to expand, with Mozambique last week approving petroleum exploration and production contracts for CNOOC (China National Offshore Oil Corporation) subsidiaries.

China’s largest producer of offshore crude oil and natural gas CNOOC Limited said last week that Mozambique’s government and its wholly owned subsidiaries signed petroleum exploration and production concession contracts for five offshore blocks in Mozambique.

CNOOC’s subsidiaries signed the concession contracts (EPCCs) with Mozambique’s Ministry of Mineral Resources and Energy (MIREME) and Empresa Nacional de Hidrocarbonetos (ENH).

According to CNOOC’s statement, the contracts were signed for a total of five blocks, all located offshore Mozambique. The total area is approximately 29,000 square km, with water depths from 500 to 2,500 meters.

Speaking at the signing ceremony, Mozambique’s Minister of Mineral Resources and Energy Carlos Zacarias said the deals mark the conclusion of a process that began in 2021.

Under the terms of the contracts, the first stage of the exploration period of the blocks shall be four years.

The five wholly owned subsidiaries of CNOOC Limited shall act as the operators in the exploration and development phases and independently owns the operating interests in the five blocks. ENH owns the remaining non-operating interests.