Anadarko Gas discovery in the Rovuma Basin, offshore Northern Mozambique

Press release from the Ministry of Mineral Resources (MIREM)/National Petroleum Institute (INP)

The exploration well Windjammer, operated by the US oil company Anadarko Petroleum Corporation proved a gas accumulation in sandstone reservoirs of Oligocene age between 3200 and 3900 meters below sea level, in water depths of about 1500 meters.

The well was drilled about 35 km off the Mozambique coast (Attached image), in the concession area called “offshore area 1” in the Rovuma sedimentary basin, offshore the Cabo Delgado Province.

The discovery was made in toe-trust sands of Oligocene age with a net pay of 147 meters. The well is planned to be drilled another 1200 meters, to a total depth of 5500 meters below sea level. An extensive data acquisition programme has preceded the drilling of this well. The results so far are encouraging, and further evaluation work of the discovery will be undertaken.

The Windjammer well is the first offshore well in the Rovuma basin, and the third exploration well in the Mozambican part of that sedimentary basin. After completing the Windjammer well, Anadarko will drill a prospect called Collier, 75 km further south. In addition to the Collier well, Anadarko plans to drill another 2-4 exploration wells in the concession area during 2010.

The Minister of Mineral Resources, Esperança Bias, declared in a press conference at the Northen Province of Nampula that the discovery was important for the Mozambican people, as once the reserves are proven commercial, they may contribute for the economic development of that region.

The Anadarko Moçambique Area 1 concession was awarded as Exploration and production concession contract (EPC) in December 2006, as a result of the second Mozambique Licensing round. The concessionaires of this area include, in this exploration phase:

• Anadarko Petroleum Corporation, operator (43,00 %)
• BPRL Ventures Mozambique B.V. (11.75 %)
• Cove Energy Mozambique Rovuma Offshore Ltd (10,00 %)
• Mitsui E&P Mozambique Area 1 Limited (23,50 %)
• Videocon Mozambique Rovuma 1 Limited (11,75 %)

The Mozambique national oil company Empresa Nacional de Hidrocarbonetos (ENH), has a carried interest option of 15 %.