CNOOC, the Chinese oil and gas company, said on Friday that it has entered into oil exploration and production concession agreements with the Ministry of Energy and Minerals of Mozambique and ENH, the national oil company of Mozambique. The agreements involve five deepwater blocks located offshore Mozambique in an area of around 29,000 square kilometers (11,200 MI). These blocks can reach depths of 500 to 2,500 meters (AGB 1640 to 8202 feet) according to a statement from CNOOC.
In the four-year exploration phase, five sub companies of CNOOC will be undertaking the operations, whereby they will both explore and develop the resources. These Sub are holding the independent operator interests, while ENH continues to own the other minor minority stakes.
CNOOC is thus not limited to exploration activities for energy resources in Mozambique. In the year 2019, its gas and power unit, Singapore Trading and Marketing signed a long term 13-year deal with Mozambique LNG1 Company where it offers liquefied natural gas (LNG) from the Mozambique Area 1 onshore LNG production facility. This step aptly captures the ongoing strategic direction of CNOOC within the pipeline of developing energy sector in Mozambique.
The development comes handy in achieving specific strategic goals set out by CNOOC during its earnings review in March this year. The company stated its plans to continue focus on the enhancement of purpose as far as increasing reserves and boosting production potentials in course of this year. This strategic switch emphasises CNOOC’s efforts to strengthen its position in the most important energy markets worldwide with a focus on Mozambique.