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Exploration opportunities within the Mozambique Rovuma Basin. Arsenio Mabote - Chairman INP. Introduction to Mozambique. Location: South-eastern Africa Land area: approximately 800,000 Km 2 Coastline: Approximately 2,700 Km Onshore sedimentary area: 290,122 Km 2
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Exploration opportunities within the Mozambique Rovuma Basin Arsenio Mabote - Chairman INP
Introduction to Mozambique • Location: South-eastern Africa • Land area: approximately 800,000 Km2 • Coastline: Approximately 2,700 Km • Onshore sedimentary area: 290,122 Km2 • Offshore sedimentary area: 282,227 Km2 • Population: 19.420.036 (2005 - INE) • Climate: Sub-tropical to tropical • Capital: Maputo • Over 60 Rivers & Lakes • Official Language: Portuguese • Natural Resources: Hydropower, natural gas, coal, minerals, raw wood, agriculture • Export: prawn, cashew, sugar, tea, coconut oil, cotton • Currency: Metical (MZM) • PIB per capita: US$ 236.9 (1998) • PIB growth: 9% (1999) MOZAMBIQUE MAPUTO INP_ Instituto Nacional de Petróleos
Mozambique 2nd License Round – Rovuma Basin The Rovuma Basin is about 400 km long and 160 km wide (250 by 100 miles). The Rovuma Basin extends from the port of Nacala in to Southern Tanzania. The basin is located both onshore and offshore and within Mozambique covers over 30,000 sq.km (12,000 sq. miles). For the purposes of the bidding round the Rovuma basin has been divided into seven areas, one area onshore and six areas offshore
Over 30,000 sq km Under explored Water depths from 0 to >2,500m Deep water never licensed Mozambique 2nd License Round – Rovuma Basin
Rovuma Basin • Well Data • Old Offshore Seismic Data • Onshore Seismic Data • Modern Offshore Seismic Data • Gravity / Aero-magnetic Data • Satellite Data
Rovuma Technical Data All Technical Data available for the bidding round: • Data Rooms • Landmark Project • SMT Kingdom Project • Data Package to include: • Information CD (Petroleum Law & Prospectivity Posters) • Country Overview Report • Digital Well Data • Digital Seismic Data • Field Work / Field Visits
Rovuma Basin Exploration History • <1980 - Some fieldwork in 1960’s • 1980 - CGG aero-magnetic survey • 1981 - Geco offshore 2D spec. seismic survey • 1983 - Esso/Shell, JV Rovuma Basin • 1985 - Esso/Shell, onshore seismic, grav, mag • 1986 - Esso/Shell, Mocimboa 1 well • 1986 - Esso/Shell, relinquish licence • 1989 - ENH, shallow water seismic survey • 1996 - Lonropet, Rovuma PSA (1st offshore licence) • 1996 - Lonropet, Aero-magnetic survey • 1996 - Lonropet, Geological field work Continued...
Rovuma Basin Exploration History • 1998 - Lonropet, Onshore relinquished • 1998 - Lonropet, Offshore 2D seismic survey • 1998 - Lonropet, Energy Africa farmin 30% interest • 1999 - Lonropet, Geological field work • 2000 - Lonropet, Geological field work • 2000 - Lonropet, Interpretation and Analysis • 2001 - Lonropet, PSA Relinquished • 2005 - Mozambique 2nd Licensing Round
Well Ties • Mocimboa 1 - Esso / Shell
Well Ties • Mnazi Bay 1- Agip DST 4 Flowed Gas at 393,800 m3/day
Lonropet Seismic Program • Acquired in 1998 • 3,600 Km 2D Seismic Data • Data shot and processed for Lonropet by Western Geophysical
Field Work Program • Review of previous work • Seismic to surface geology ties • Seek possible source rocks • Seek possible reservoir rocks • Seek hydrocarbon seeps
Review of previous work - Flores circa 1960 • Field Work, 1960 • Old Field Maps • Old Reports • Help to locate samples • Seep on Montipuez River ? 2000 - Florence 1960 - Mtwara Tar Sands
Field Work Summary • Sampled potential source rocks within the Cretaceous. • Sampled good quality reservoir rocks with high porosity • Sampled several oil seeps • Sampled gas seeps • Discovered Jurassic sediments within the Rovuma
Structural Elements • Northern Area • Rovuma Delta • Southern Area • Ibo High • Palma Embayment
Interpretation Overview • Tertiary Delta • Cabo Delgado • Ibo High • Pemba • Ibo North • Ibo Central • Ibo South
Ibo North Prospect • GRV of 133 billion m3 assuming a thickness of 400m of Karroo sediments • Net to Gross of 20% • Porosity of 18% • Water saturation of 30% • Water depths of 500 - 700m • Depth to crest, 2300m • Four way dip closure (418km2) with 1100m of vertical relief • Triassic to early Jurassic fluvio-deltaic channel and sheet sands
Interpretation Overview • Tertiary Delta • Cabo Delgado • Ibo High • Pemba • Ibo North • Ibo Central • Ibo South
Rovuma Delta Reservoirs and seals Tertiary deltaic sands Seals Tertiary marine shales Source Jurassic and Cretaceous shale Play Fairways • Ibo High • Reservoirs • Karroo, Jurassic & Cretaceous • Seals • Karroo intraformation shale • Transgressive Jurassic and Cretaceous shales • Source • Karroo shale • Middle to Upper Jurassic Palma • Embayment and Rovuma Basin shale
Leads & DHI Map Exploration Potential • Tertiary Delta Sector • Cabo Delgado, sub marine fan sand • Sub Thrust Play • Backwall Anticline • Fore-thrust Compressional Lead • Imbriacte Structures • Vanizi Lead • Ibo High Sector • Eastern Flank, Turbidite Fan Sands • Aptian Lead • Reactivation Features • Cretaceous Reefs • Southern Sector • Half Graben Lead
Technical Summary • Initial exploration of the Rovuma Basin has shown it to be a multi-play and multiple prospect area with direct HCI’s • Exploration in the Rovuma is high risk but high reward • The most outstanding features identified are the “Tertiary Delta” in the north and the “Ibo High” horst trend in the south • Source and Reservoir rocks have now been sampled and identified within the Rovuma Basin • The Rovuma Basin has the potential to contain a world-class hydrocarbon accumulation
Framework conditions • Core Elements of new regulatory structure: • Petroleum Law 3/2001 • Petroleum Regulations 2004 • New Model Exploration and Production Concession Contract Legend Administrative law Contract law INP_ Instituto Nacional de Petróleos
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 Concession/ Licensing Production Sharing Contract Exploration Production Concession Contract Contract Increased reliance in new EPCC based system on legislation rather than contract clauses INP_ Instituto Nacional de Petróleos
INP Organisational structure Petroleum law the legal foundation for the governance structure of petroleum activities clarifying roles and interests: Regulator Resource owner Commercial Interest
FINAL REMARKS • Mozambique offers good exploration opportunities: • Good prospective acreage available • Favourable legal, regulatory and fiscal framework • Adequate infrastructure for natural gas transmission; • Political stability • Licensing Round to be announced, 15th of July 2005.