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Mozambique Offshore

Rovuma Offshore Gas discoveries 2010 and 2011

In 2010 and early 2011 four significant gas discoveries were made by the Rovuma Offshore
Area 1 partnership. These discoveries have precipitated an appraisal and testing programme
aimed at achieving a final investment decision on a Liquefied Natural Gas (“LNG”) project
by Q3–2013. The current estimate for the resource potential is some 12 trillion cubic ft
(“TCF”) of gas and planning is already underway to evaluate the commercialisation of a
project utilising a minimum of 6 TCF in a single train LNG project.

Windjammer

The Windjammer well is located some 30 miles off the coast of northern Mozambique in
approximately 4,800 ft of water. Windjammer reported 480 net ft of natural gas pay in high-
quality reservoir sands in two distinct horizons of Oligocene age sandstones, with a gross

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0m Total Cut Windjammer #2. Lagosta The Lagosta well encountered a total of more than 550 net ft of natural gas pay in multiple high-quality Oligocene and Eocene sands and was announced in November 2010. BP3 – Oligocene Fan 1 162. An additional 75 net ft of gas pay was discovered in the Palaeoscene target. Specifically.0m Total Cut Windjammer #2. Recovered 389. the discovery well encountered more than 308 net ft of pay in two Oligocene sands that are separate and distinct geologic features. The well reached total depth at approximately 16.column of more than 1. Lagosta was drilled to a total depth of approximately 16. in water depths of approximately 5.7m (99.880 ft.200 ft.2%) Barquentine The Barquentine well which is located two miles northeast from the Windjammer discovery reported a total of 416 net ft of natural gas pay in multiple high-quality sands in October 2010.900 ft in water depths of approximately 2. Tubarão The Tubarão discovery well encountered more than 110 net ft of natural gas pay and no water in a high-quality Eocene-age reservoir that is separate and distinct from the hydrocarbon accumulations in the three previous discoveries. A coring programme as part of the appraisal work on this discovery commenced in February 2011 and the following is an analysis of this operation: Total Cut Windjammer #2. The well was drilled to a total depth of approximately 13.930 ft and was plugged and suspended in March 2010.200 ft. BP2 – Palaeoscene 121. This discovery is located approximately 16 miles to the south of the Barquentine discovery and 14 miles to the southeast of the Windjammer discovery. Barquentine was drilled to a total depth of approximately 16.950 ft and was plugged and 2|Page . BP3 – Oligocene Fan 2 110. bringing the total net ft of natural gas pay in Windjammer to 555 ft.0m Programme Total – Cut 393. but age-equivalent to those horizons in Windjammer.307 ft.080 ft. This well also found an additional 108 net ft of gas pay in the Palaeoscene sands and the seismic data indicates that this deeper pay section is contiguous and appears to be connected to the 75 net ft of natural gas pay encountered in the Palaeoscene target at Windjammer.0m. in water depths of approximately 5.

also indicated that the Oligocene reservoirs are in static pressure communication between the wells. The well bore at Tubarão was preserved by the partnership for potential utilisation in future testing. The results of the Barquentine-2 appraisal well. Tubarão is located some 17 miles southwest of the Lagosta drill site. Barquentine 2 Barquentine-2 appraisal well.suspended in February 2011. Barquentine and Lagosta complex.100 meters) in approximately 5.650 meters) of water.400 feet (1. Barquentine-2 appraisal well was drilled to a total depth of approximately 13. is located in Mozambique’s Offshore Area 1 of the Rovuma Basin and encountered more than 230 net feet (70 meters) of natural gas pay in high-quality Oligocene-age reservoirs. Barquentine-2 was the first appraisal well in the Windjammer. 3|Page .500 feet (4. located approximately 2 miles (3 km) east-southeast of the Barquentine-1 discovery well. spudded in Late June 2011.

in a water depth of 3. Drilling operations ceased in August 2010 at a total depth of 17.445 ft.Other drilling results 2010 Two further wells have been drilled in the Rovuma Offshore block during 2010 as follows: Ironclad The Ironclad well location is 110 km south of the Windjammer gas discovery well and was drilled to evaluate the hydrocarbon potential of an aerially extensive Cretaceous deepwater fan complex in the southern part of the Rovuma Offshore block and in particular to determine the presence of oil in an area believed to have the geological parameters necessary for liquid hydrocarbon generation. the well having penetrated 671 ft of targeted Cretaceous age sediments in two distinct fan lobes.403 ft. The well penetrated 125 net ft of oil and gas saturated sands in the upper fan lobe. The presence of oil was confirmed by geochemical analysis of rotary side wall cores taken from 4|Page .

At this stage it is expected that the Deepwater Millennium will be deployed for appraisal drilling and testing with the Belford Dolphin returning to drilling exploration wells. in which the oil and gas were encountered. An analysis of the logs and cores indicates that the sands. The Collier well did not penetrate or fully evaluate the entire predicted objective section. There were also significant gas shows reported throughout the drilling of the Cretaceous section. Collier In April 2010 operations on the Collier well were suspended after encountering pore pressure issues at the top of the predicted reservoir objective. Advancing towards a commercial solutionTo top The Rovuma Offshore partnership has sanctioned a rapid exercise to appraise and evaluate the known gas discoveries to FID by Q3–2013. 5|Page . A series of parallel programmes have been initiated in order to achieve this milestone. The oil encountered in the Ironclad well is the first documented occurrence of liquid hydrocarbons in deepwater offshore East Africa. the Deepwater Millennium. following the arrival of the second rig. Ongoing explorationT A significant feature of the work in Rovuma Offshore block is the expectation of a return to the aggressive drilling programme in late 2011. Collier is located 45 miles off the coast of Mozambique at a water depth of 4. A key objective in the development process is the securing of long term gas sales agreements that are sufficiently robust to underpin a decision to investment in the project. causing the operator to deem it unsafe to continue drilling.the well bore. The well was plugged and suspended at approximately 10.500 ft. have low porosity and permeability.922 ft.

Golfino and the Miocene targets in the north-east of the block. Currently the partnership has confirmed gas discoveries in the Palma Gas Field and at Tubarão and has encountered oil in Ironclad. Orca and Trawler (Palma Gas Field) and Barracuda. In addition the results from the new 3D programme will provide a greater technical understanding on the targets in the south of the block. There are a number of existing high priority targets within these proven areas that will be attractive for new exploration drilling including Atum.5% Mitsui 20. Mozambique Rovuma Offshore Area 1 partnership – Working Interest Anadarko 36.0% Bharat Petroleum 10. Caravel.0% ENH (carried interest) 15.0% Cove 8.5% 6|Page . Black Pearl and Bireme and in the northern area Linguado.0% Videocon 10.The new 3D seismic acquisition will provide an important orientation tool and the partnership is confident that it will prove as accurate in predicting hydrocarbons in the new 3D area as it has to date in the existing 3D area.

” There are markets in need of gas in Asia and it can also be exported to Europe.” Mozambique Energy Minister Salvador Namburete told reporters after speaking at a conference in Lisbon today. “There will be gas liquefaction but we still don’t have details because this is still being studied. “These quantities of gas are so large that it only makes sense to liquefy it and export it in large quantities. Namburete said.Mozambique is studying the development of liquefaction facilities following the announcement of new natural gas discoveries in that African country. 7|Page .

. The Ironclad well is significant because it encountered an oil column (although non-commercial). The country has two main sedimentary basins.Cretaceous Plugged and 2010 abandoned as sands had low porosity and permeability Barquentine 416 Gas 16.500 Apr. Barquentine.900 Feb. The area towards the south follows the Ibo horst trend and towards the north.Oligocene + Coring program 2010 Paleocene completed (part of appraisal work) Collier . has been the most successful so far with 4 significant gas discoveries. and measures 400 km in length and about 160 km in breadth. These are listed below: Discovery Net Gross Oil/ Total Date Reservoir Future Work Name Pay Pay (ft) Gas Depth rock (ft) Windjammer 555 > 1200 Gas 16.880 Oct. was the first field to be discovered in Mozambique. Plugged and 2010 suspended following pore pressure issues.Mozambique: Oil & Gas Exploration in 2011 – 2012 Mozambique is a country in East Africa present between Tanzania on the north and South Africa in the south.307 Nov.Eocene Appraisal 2011 Table 1: Windjammer. This was followed by the Búzi (1962) and Temane (1967) gas fields.930 Mar. The Rovuma Basin is located close to the border between Tanzania and Mozambique. led by Anadarko. . at the Rovuma delta. A string of significant gas discoveries in the off shore north-east has substantially increased the prospectivity in the country and exploration activity looks set to pick up. Did not evaluate the desired section. Ironclad 124 Oil 17. The consortium exploring the Offshore Area 1. 10. 8|Page . Lagosta and Tubarao encountered substantial gas. The Pande gas field. it is featured as a tertiary Rovuma delta. where most of the discoveries have occurred. the Rovuma Basin in the north east. and the Mozambique basin further south. in 1961. Exploration activity on the Pande/ Temane block by Sasol later led to the discovery of the Inhassoro gas field. discovered by Gulf Oil.402 Aug. Oligocene + Coring program 2010 Eocene completed (part of appraisal work) Tubarao 110 Gas 13. Oligocene + Appraisal 2010 Paleocene Lagosta 550 Gas 16.

which was the first time oil was discovered in offshore Mozambique or in the deep offshore off East Africa. along with an account of recent exploration from Derrick Petroleum’s “Exploration Database” is provided below. Block/ License Operator Onshore/Offshore Hydrocarbon Wells Wells Name planned planned in 2011 in 2012+ Offshore Area Anadarko Deep Offshore Gas 1 6 1 9|Page . Source: Wentworth Resources An overview of exploration activity planned in the country is provided in the table below. Derrick Petroleum Services.Source.

300 km2 and lies immediately to the North of the Pande.A. The Buzi block is located onshore within the central part of the Mozambique Basin and covers approximately 10. An overview of the recent exploration activity in this area is given in Table 1.5%) operates this block and the partners are Maurel & Prom (24%). On October 11. In 2012. Wentworth Resources Ltd (15. Inhaminga Block: The Inhaminga Block lies onshore Mozambique. However. is only 27 km to the southwest of Beira. the partners have agreed to enter a 2nd exploration phase beginning in 2011. following which exploratory drilling would occur.P. DNO International (34% WI) operates the block and partners are New Age Ltd (41%). E. The undeveloped Buzi gas discovery within the block. Linguado. 2009 the first exploration well on the block. BPRL (10 %). This is yet to be done. Harmattan Uruguay S.5 %).. as on 30 June.was spudded. and the Mozambique 10 | P a g e . Golfinho-1. Empresa Nacional de Hidrocarbonetos. Buzi Block: This onshore block is operated by Energi Mega Persada (75% WI) and partner is ENH (25%). Cove Energy Plc (10%) and ENH (15%). Temane and Inhassoro Gas fields.Onshore Anadarko Onshore Not 1 Rovuma Block mentioned Buzi Block Energi Mega Onshore Gas 1 Persada Inhaminga DNO Onshore Not 1 International mentioned ASA (DNO) Blocks 2 & 5 StatoilHydro Deep Offshore Not mentioned Area 4 ENI Deep Offshore 1 Table 1: Operators planning to drill exploration wells in Mozambique in 2011 and 2012+. the consortium plans to drill the Atum-1. The work programme is expected to include additional seismic acquisition and at least one exploration well. Badejo-1. It had minor gas shows and was plugged and abandoned. At present (July 2011). 2011. Videocon Mozambique Rovuma 1 (10 %) and Cove Energy Mozambique Rovuma Offshore (8. Co-owners in the area are Mitsui E&P (20 %). Source. should gas be discovered. Initial plans included two exploration wells and possibly two appraisal probes. Onshore Rovuma Block: Anadarko (37. Derrick Petroleum ‘Planned Wells Exploration Database’ Offshore Area 1: Anadarko is the operator of the 2.interest is carried through the exploration phase.6-million-acre Offshore Area 1 with a 36. Mecupa-1.'s 15. Camarao and Black Pearl prospects.5% working interest. The consortium is planning to acquire 3D seismic over the Black Pearl prospect in Q1-Q2 2011. The consortium was planning to spud its first well on the block in 2011 as announced in 2009. no information about drilling has been released by either of the partners. and the 4 discoveries can be seen in Map 1.3%).

and this operation is part of Eni's strategy to identify new areas with a high exploration potential. ENH (10%) and KOGAS (10%).35pm IST NEW DELHI: Videocon Industries and state-run Bharat Petroleum Corp today said the natural gas discovery they made off Mozambique may hold at least 10 trillion cubic feet of reserves. Gas discovery in Mozambique holds at least 10 trillion cubic feet PTI Oct 5.government (20%). but as on 1 July. US-based Anadarko Petroleum Corp.300 sq km 3D seismic survey was carried out between March & June 2010 and interpretation is ongoing as of March 2011. 2010. hold 10 per cent stake each in Area-1. However. encountered "excellent quality" 73 net meters of natural gas pay at the Camarao exploration we The operator carried out appraisal of the discovery and has confirmed that the discovery is connected to previously announced Windjammer and Lagosta discoveries. "In addition. 11 | P a g e . and was also dry. this decision is still forthcoming. 2011. Area 4: ENI operates the block with a 70% WI. Bharat PetroResources Ltd. The first prospect Chite was drilled on 19 November. the Camarao well discovered approximately 43 net meters of natural gas pay in shallower Miocene and Oligocene sand packages not encountered in previous wells.600 metres in the Rovuma Basin and covers an area of 17. DNO International has planned to carry out 2D seismic program on the block in H2 2009. DNO says in its 2010 annual report that it plans to drill a well here in 2011. and Videocon Hydrocarbon Holdings Ltd. a wholly-owned subsidiary of BPCL. Other partners are Galp Energia (10%).646 sq kms in a previously unexplored geological basin. However. and operated by Statoil (90% WI) with partner ENH (10%). media reports mention that DNO will close down its operations in Mozambique after drilling unsuccessful wells. The second well Inhaminga High-1 well was spudded in Feb 2011. A 1." the Indian firms said in separate statements. Blocks 2&5: Blocks 2 & 5 are located in the Rovuma basin offshore northern Mozambique. a wholly-owned subsidiary of Videocon Industries. 06. the well was dry and was plugged and abandoned. The consortium is planning to drill a well in September 2011. The decision to extend the license and commit to drilling an exploration well was supposed to have been made by 1 June 2011. almost the same size as Reliance Industries' world class K-G basin gas find. Area 4 is located in deep water up to a depth of 2. the operator of the Area-1 in Rovuma basin off Mozambique where the two Indian firms are minority partners.

It is mobilising a second deepwater drillship to accelerate the campaign comprising an extensive reservoir testing programme including the drill stem test of the Camarao discovery well and drilling of further exploration/appraisal wells." the statements said. Anadarko. 12 | P a g e . plans to put up plants to liquify the gas (liquefied natural gas or LNG) so that it can be shipped to consumption centres in cyrogenic ships."The operator.5 per cent interest in the block. Lagosta and Camarao complex holds at least 10 Tcf of recvoerable natural gas resources. Reliance had last year produced over 60 million standard cubic meters per day from its K-G D6 gas discoveries before technical problems led to drop in output. Anadarko. informed that the results of the activities to date in this frontier basin provide high confidence that the Windjammer. The two LNG trains will have a capacity to produce 5 million tons of liquid fuel each. including the evaluation of two newly acquired 3D seismic datasets and expanded prospect opportunities". Anadarko is "optimistic that the current estimates will increase. Cove Energy Mozambique Rovuma Offshore Ltd holds 8.5 per cent interest in the block and Mitsui E&P Miozambique another 20 per cent. The balance 15 per cent is with Empressa Nacional de Hidrocarbonetos (EIH). The output is enough to produce about 15 million tons of LNG per annum. which holds 36. as still significant exploration and appraisal work is ahead. the national oil company of Mozambique. Barquentine.