Contracts for oil production and exploration are signed by China’s CNOOC with Mozambique

The national energy business ENH and the energy ministry of Mozambique have signed contracts for oil exploration and production concessions, according to a statement made on Friday by the state-run China National Offshore Oil Co (0883.HK), opens new tab.

According to a release, the contract is for five offshore blocks in the waters off the African country. The total area covered by the blocks is around 29,000 sq km (11,200 sq miles), with ocean depths ranging from 500 m to 2,500 m (1,640 ft to 8,202 ft).

Five CNOOC companies are acting as operators for the first four years of the exploration period, with separate operator rights and interests during the exploration and development phases.
The remaining non-operating interests are owned by ENH.

In 2019, Mozambique LNG1 Company and CNOOC’s gas and power division Singapore Trading and Marketing inked a 13-year sale and purchase deal for LNG from the Mozambique Area 1 onshore LNG facility.

CNOOC declared in a March earnings briefing that it would prioritize raising production and reserves this year.