China’s oil and gas giant CNOOC Limited has expanded its footprint with new petroleum exploration and production concession contracts (EPCCs), gaining access to five blocks off the coast of Mozambique.
According to CNOOC, its five wholly owned subsidiaries got hold of five offshore blocks in Mozambique, after entering into petroleum exploration and production concession contracts with the Ministry of Mineral Resources and Energy of Mozambique (MIREME) and Empresa Nacional de Hidrocarbonetos (ENH).
Located offshore Mozambique, the area the five blocks cover is approximately 29,000 square kilometers, with water depths from 500 to 2,500 meters. Under the terms of the contracts, the first stage of the exploration period shall be four years.
CNOOC’s subsidiaries will act as the operators in the exploration and development phases and independently own the operating interests in the five blocks: S6-A (70%), S6-B (77.5%), A6-D (77.5%), A6-E (80%), A6-G (79.5%).
The Chinese giant’s partner in these blocks will be ENH, which owns the remaining non-operating interests: S6-A (30%), S6-B (22.5%), A6-D (22.5%), A6-E (20%), A6-G (20.5%).
CNOOC is working to usher in the energy transition while also developing its oil and gas business, as confirmed by its business strategy and development plan for 2024. Recently, the firm brought on stream a gas project in the Bohai Sea offshore China.
Prior to this, the Chinese energy heavyweight made a significant oil discovery in the northcentral waters of the Bohai Sea, which followed the one the firm disclosed in the eastern South China Sea.