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Contract signed for exploration and production offshore Mozambique

February 17, 2006, 10:00 CET

On Thursday 16 February the Exploration and Production Concession (EPC) Contract for Areas 2 & 5 in the Rovuma Basin offshore Mozambique was signed between the government of the Republic of Mozambique, the national oil company Empresa Nacional de Hidrocarbonetos (ENH) and Hydro.

The signing ceremony took place in Pemba in northern Mozambique. The contract was signed on behalf of the government by Esperança Luarinda Bias, Minister of Mineral Resources.

Areas 2 & 5 cover an area of approximately 14,500 square kilometers immediately to the east and north of Pemba, the provincial capital of the Cabo Delgado Province. Water depths in the areas range from shallow to more than 2,000 meters.

Following execution of the contract the first priority will be to complete an environmental impact assessment prior to conducting initial seismic operations.

"This represents an interesting development of our engagement offshore East Africa," says Svein Breivik, head of Hydro's Angola business unit. In addition to following up the company's activities in Angola, the Hydro office in Luanda is responsible for activities in Mozambique and other parts of East Africa.

Partners in the EPC are:

  • Norsk Hydro Oil and Gas Mozambqiue (operator): 90%
  • Empresa Nacional de Hidrocarbonetos: 10%