March, 15 – 19 th 2011 Rio de Janeiro, Brazil

1. INSTITUTO NACIONAL DE PETROLEO - INP MOZAMBIQUE FEEDBACK TO NDR10 By: Inocência E. Maculuve Geologist e-mail: inocencia.maculuve@inp.gov.mz www.inp.gov.mz March, 15 – 19th 2011 Rio de Janeiro, Brazil

2. OUTLINE • BACKGROUND • NATIONAL ARCHIVE FOR PETROLEUM DATA – NAPD • REPORTING STRUCTURE & FUNTIONS OF THE NAPD & RELATIONSHIP TO GOVERNMENT • LEGISLATION ISSUES • EXPLORATION & PRODUCTION DATA

3. INTRODUCTION TO MOZAMBIQUE • Location: South-eastern Africa • Areal extent: approximately 800,000 Sq.km • Coastline: Approximately 2,700 Km • Onshore sedimentary area: 290,122 Sq.km • Offshore sedimentary area: 282,227 Sq.km • Population: 21.8 million (2009) • Capital: Maputo (3 million people) • Natural Resources: Hydropower, natural • gas, coal, minerals, raw wood, agriculture • Export: natural gas, prawn, cashew, sugar, tea, coconut oil and cotton • President: Armando Emilio Guebuza Google

4. LEGAL FRAMEWORK

5. LEGAL FRAMEWORK - PETROLEUM OPERATIONS • Petroleum law the legal foundation for the governance structure • of petroleum activities clarifying roles and interests: MIREM Resource owner Commercial Interest Regulator

6. Petroleum Law Legend Administrative law Contract law LEGAL & REGULATORY FRAMEWORK Core Elements of new Regulatory Structure: • Petroleum Law 3/2001 -2001 • Regulation for Petroleum Operations - (2004) • New Model Exploration and Production Concession Contract (EPC) – 2005 • New Fiscal Law on Petroleum Activities 12/2007: • 6 % for Gas • 10 % for Oil

7. PETROLEUM ACTIVITIES

8. MOZAMBIQUE SEDIMENTARY BASINS Rovuma Basin Mozambique Basin Maniamba Basin Middle Zambeze Basin Lake Niassa Basin

9. CONCESSION AREAS MOZAMBIQUE BASIN (8)

10. CONCESSION AREAS ROVUMA BASIN (5)

11. CONCESSION AREAS Mozambique Basin(8) Pande/Temane – SASOL Block 16 & 19 – SASOL Inhaminga – DNO Sofala Bay – SASOL M-10 – SASOL Buzi – Busi Hydrocarbons Area A – SASOL RovumaBasin(5) Area Onshore– Anadarko Area 1 – Anadarko Area 4 – Eni Area 2 & 5– StatoilHydro Area 3 & 6 – Petronas

12. DATABASE • Data • Wells • Total of 125 wells (off / onshore): • 70 wells – wildcat • 24 wells – production • 31 wells – appraisal • Seismic • Approximately 114.000 km of 2D seismic (off / onshore) • Approximately 15.000 Sq. km of 3D seismic (offshore).

13. DATABASE • Gas Discoveries • Mozambique Basin • 1961 – 1st Discovery – Pande (2.46 TCF) • 1962 – 2nd Discovery – Buzi (1.07 TCF) • 1967 – 3rd Discovery – Temane • 2003 - 4th Discovery - Temane East • 5th Discovery – Inhassoro • 2008 – Technical Gas Discovery – Area 16&19 • Rovuma Basin • 2010/11 – 4 Deep water Gas Discoveries – Area 1 • Oil shows – Area 1

14. MOZAMBIQUE LICENSING ROUNDS • 2nd Licensing Round (Rovuma Basin) • Jul 05 - License Round Announced • Nov 05 - Clarification Meetings • Jan 06 - Applications submitted • 3rd Licensing Round (Mozambique Basin) • Dez 07 - License Round Announced • Aug 08 - Clarification Meetings • Jun 08 - Applications submitted • 4th Licensing Round (Onshore Basin) • Nov 09 - License Round Announced • Jul 10 - Clarification Meetings • Jun 10 - Applications submitted

15. NATURAL GAS PROJECT

16. NATURAL GAS PROJECT Exploration Production Transmission Distribution Comercialization Mozambique South Africa C P F INP (Regulator - Mozambique) NERSA (Regulator - RSA) • Campos • Sasol Petroleum Temane (SPT) 70% • Gov. Moç. 25% (ENH/CMH) • World Banc / IFC 5% • CPF • Sasol Petroleum Temane (SPT)70% • Gov. Moç. 25% (Via ENH/CMH) • IFC 5% • Pipeline (ROMPCO) • Sasol gas Holdings (50%) • Gov SA 25% (Via CEF/gas) • Gov. Moz. 25% ENH/CMG) • Market • Sasol gas (external market) • Sasol gas local merket: • Spring Lights gás (49%) • Sasol Synfuels • Sasol Oil • - Tshwarisano 25% • - LFB 75% • Petrochimical Industry - Sasol ROMPCO: Republic of Mozambique Pipeline Investment Company

17. MOZAMBIQUE – RSA NATURAL GAS VENTURE • One Central gas Processing Facility (the “CPF”) • An 865 km- 26” diameter steel pipeline to Sasol’s coal-to-liquids complex at Secunda in South Africa (531 km on Mozambican side) • System capacity: 120 Mill GJ/year (3 billion cu.m/yr) • Increase of system capacity to 183 mGJ/year as per PDO approved in 2009 • Production period of 25 years starting from January 2004 • Market - Sasol’s petrochemical factories and conversion of the synthetic gas distribution system to natural gas

18. GAS PIPELINE TEMANE – SECUNDA Matola Gas Pipe

19. NATIONAL ARCHIVE FOR PETROLEUM DATA - NAPD

20. NAPDPURPOSE • Ensure that data & information from petroleum activities is made available • Develop a consistent knowledge base for petroleum activities

21. HOW TO ACHIVE THE PURPOSE? • By gaining control of petroleum data and stimulate exploration activities • By developing core skills locally for data management

22. NAPD FUNCTIONS • Receive and integrate data into the database • Compile hydrocarbon reserves and production data • Update technology, equipment & standards used for data • Management towards petroleum operations • Make proposals of standards for reception & delivery of data • Make public data available (Data room review)

23. ACHIEVEMENTS Established in 1999 • All data kept in a modern standard format • IBM 3480 cartridges • IBM 3590/92 cartridges • Database to track all seismic tapes • Database for documents (reports, well information, logs, sepias, etc) • Database for cores & cuttings • Captured prospects and cultural data and stored in GIS database • Integrated data base being finalized

24. AT PRESENT ACTIVITIES • Completed the Transcription Project from IBM 3480/90 to IBM 3590 (back up) • Backup room established & fully operational • Created the standards for data & Information types • Approved the license strategy • New core storage to be finalized in March 2011 • Digitize analogue data (65%)

25. AT PRESENT • IT Systems • SMT Kingdom Suite • Magma • GIS TECHNOLOGY • Use of “modern” seismic tapestations: • SEG adopted standard media(s) • IBM 3480/3490E & IBM 3590 • Exabyte 8mm • DLT 8000 20/40GB • Access Database • Data storage controlled • Environmental parameters • Stable internet

26. AT PRESENT CAPABILITIES • Create income • Data Storage & Management • Produce Seismic Data Copies & Delivery • Seismic Data Interpretation - 8 workstations available • Produce Maps • - GIS

27. REPORTING STRUCTURE & FUNTIONS OF THE NAPD & RELATIONSHIP TO GOVERNMENT

28. REPORTING STRUCTURE & FUNTIONS OF THE NDR & RELATIONSHIP TO GOVERNMENT Ministry of Mineral Resources

29. INP ORGANIZATION Chairman Legal Advisers Administrative & Financial Department Administrative & Patrimony Department Human Resource Department Projects & Development Division Exploration Division Projects & Development Directorate Fiscal & Safety Directorate Resource Assessment Data Centre

30. LEGISLATION - RECORDS & REPORTS According to the Article 19 of the Petroleum Law: • “All data obtained pursuant to any contract provided for under the Law 3/2001 is the property of the Mozambican State.”

31. EXPLORATION & PRODUCTION DATA

32. EXPLORATION & PRODUCTION DATA Reporting Requirements - Records and Reports The contracts state that the concessionaires shall provide: • Records of its operations in the EPC Area • Available information • Data and reports • Well logs, • Maps, • Magnetic tapes, • Core & cutting samples • Other geological and geophysical information • Assessments

33. Procedures to Obtain Access to Data: Contact INP Sign a Muster/Supplemental Agreements Copy and delivery Cost of Data depend on: Age Package Exclusive Spec seismic surveys EXPLORATION & PRODUCTION DATA

34. FUTURE PLANS • Continue Data Loading & extend Data types • Continue digital capture of petroleum data currently held in analogue form • Continue to develop in-house skills • Information Management System being strongly considered • Turn the NAPD as a reference in the region

35. OBRIGADA PELA ATENÇÃO = THANK YOU FOR YOUR ATTENTION