Transcript 9thAfrican_Mabote

NOT AN OFFICIAL UNCTAD RECORD
OPPORTUNITIES AND CLIMATE
FOR INVESTMENT IN MOZAMBIQUE
Arsénio Mabote
Chairman, INP
INP_ Instituto Nacional de Petróleos
BACKGROUND
• Location: South-eastern Africa
MOZAMBIQUE
• Land area: approximately 800,000 Km2
• Coastline: Approximately 2,700 Km
• Onshore sedimentary area: 290,122 Km2
• Offshore sedimentary area: 282,227 Km2
• Population – 19.4 Million (estimated 2002)
• Capital – Maputo
• Over 60 Rivers & Lakes
• Official Language: Portuguese
INP_ Instituto Nacional de Petróleos
MAPUTO
EXPLORATION OPPORTUNITIES
INP_ Instituto Nacional de Petróleos
• Two main basins:
– ROVUMA BASIN
• NORSK HYDRO
– MOZAMBIQUE BASIN
• Petronas & ENH
• Sasol & ENH
• DNO & Wilrusco
• BANG & CLOVIS E&P
INP_ Instituto Nacional de Petróleos
MOZAMBIQUE BASIN
INP_ Instituto Nacional de Petróleos
MOZAMBIQUE BASIN
Background
• The Mozambique Basin
occupies coastal plain and
continental shelf:
– Covers about 500,000 km2:
• 275,000 km2 onshore
• 225,000 km2 offshore
Offshore Area
out to the 2,000 m isobath.
• Exploration History:
– Earlier 1907 to 1909 with drilling of
shallow wells (<100 m) in the
vicinity of reported oil seeps!
– First discovery in 1962 (Pande)
– Second discovery 1962 (Buzi)
– Third discovery 1967 (Temane)
– Forth discovery 2003 (Inhassoro)
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Onshore Area
OPEN ACREAGES:
– 25 blocks (offshore)
– Onshore area
– Buzi Block with
gas discovery
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DATABASE
• Seismic coverage
– 15,453 km onshore
– 59,530 km offshore
• Wells
– A total of 97 wells:
• 82 wells onshore
• Only 15 wells offshore
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MOZAMBIQUE BASIN
XAI-XAI GRABEN
Potential plays:
1. Fault-block traps
3. Drape over volcanic plateau
4. Stratigraphic traps in “Intra-volcanic”
reservoirs
2. Rift “shoulder” traps
3
2
1
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4
MOZAMBIQUE BASIN
• Zambezi Delta
Gas shows
and Dead Oil
Schematic Cross-Section of the Zambezi Delta
Grudja Fm.
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ROVUMA BASIN
INP_ Instituto Nacional de Petróleos
BACKGROUND
Deposition systems:
• East African passive margin basin
system
ROVUMA BASIN
Tertiary Delta
• Total Area about 73,000 km2:
• 15,000 km2 onshore
• 58,000 km2 offshore
Exploration History:
–
1983-1987 – ESSO/SHELL joint concession
–
1986 – Esso/Shell drilled Mocimboa-1 well
–
1994-1995 – NL (Mopet) onshore/offshore
concession of about 38,000 sq km.
–
1995-2001 – LONROPET onshore/offshore
concession (30,000 sq km):
•
In 1998 Energy Africa farmed in for a 30% interest
INP_ Instituto Nacional de Petróleos
Karroo Horsts
ROVUMA BASIN
• Open Acreages
 OFFSHORE AREAS 1, 3, 4 & 6
 ONSHORE AREA
 High level of interest from oil
Companies;
 Perceived all G&G conditions for oil
generation;
 Good data on source rock,
maturation and reservoir conditions;
NORSK HYDRO (NOR)
 Attractive deep water potential.
• Bidding Round
 Starting on July 2005
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OIL & GAS SEEPS
Nicupua Nicupua
Ponta Uifundo
Ponta
Uifundo
Oil Seep Sampled
Oil Seep Reported
Marua
Marua
NemandoNemando
Gas Seep Sampled
 Several oil & gas seeps
were sampled;
 Analysis demonstrated
natural origin;
 Age: Jurassic or older.
ChaondeChaonde
Ponta Maria Luisa
INP
INVESTMENT CLIMATE
INP_ Instituto Nacional de Petróleos
PETROLEUM LEGISLATION FOR THOSE WHO WANT TO
INVEST IN EXPLORATION IN MOZAMBIQUE PROVIDES FOR
• Guarantees
– Legal protection of property, rights & other assets;
– Unrestricted import & repayment of loans and equity;
– Free repatriation of dividends (100%);
– Compensation in case of expropriation
(only in case of security/health reasons);
– Good Fiscal Terms;
INP_ Instituto Nacional de Petróleos
LEGISLATION ON INVESTMENT
• Code of Fiscal Benefits
– Customs duties exemptions
– Reduction of corporate tax
– Reduction of supplementary tax
FRAMEWORK CONDITIONS
INP_ Instituto Nacional de Petróleos
FRAMEWORK CONDITIONS
• The new regulatory framework evolving previous framework
system creating the basis for regulatory consistency,
transparency and predictability in Mozambican petroleum
policy implementation
• New framework form the basis for clarification of resource
management responsibilities and State interests in the
upstream petroleum sector
• The law, regulation and model documents:
– Implement a more consistent legal hierarchical structure
FRAMEWORK CONDITIONS
• Core Elements of new
regulatory structure:
Petroleum
Law
Petroleum
Regulations
Exploration and Production
Concession Contract
Legend
Administrative law
Contract law
• Petroleum Law 3/2001
• Petroleum Regulations
2004
• New Model
Exploration and
Production
Concession Contract
FRAMEWORK CONDITIONS
System approach moving from traditional contract based
system to a modernized EPCC system regulating
relationship between State and commercial entities:
Contract
Law
Admin
Law
Risk
Service
Contract
Production
Exploration
Sharing
Production
Concession/
Contract
Concession
Licensing
Contract
Increased reliance in new EPCC
based system on legislation rather
than contract clauses
ORGANISATIONAL STRUCTURE - OLD
Petroleum law the legal foundation for the governance
structure of petroleum activities clarifying roles and
interests:
Regulator
DNCH
Resource owner
Commercial Interest
ORGANISATIONAL STRUCTURE - NEW
Petroleum law the legal foundation for the governance
structure of petroleum activities clarifying roles and
interests:
Regulator
INP
Resource owner
Commercial Interest
CONCLUSION REMARKS
• Mozambique offers good exploration
opportunities:
– Available and prospective acreage
– Favourable legal, regulatory and fiscal
framework
– Adequate infraestructure
transmission;
– Political stability
for
natural
gas
You are Welcome to
Mozambique
Muito Obrigado!
Thank you!