PARIS – Total (NYSE:TOT; Paris:FP FP) has agreed with Petronas to acquire a 40% interest in a production sharing contract offshore Mozambique.
This covers blocks area 3 and area 6 in the southern Rovuma basin, spanning 15,250 sq km (5,888 sq mi) in water depths up to 2,500 m (8,202 ft). Petronas, which will remain operator, plans an exploration well by year-end.
“After Kenya and Uganda, Total is entering into the southern part of the prolific Rovuma basin, whose oil potential might equal the gas potential of the northern part,” said Jacques Marraud des Grottes, Total’s senior vice president, Exploration & Production, Africa.
The transaction is subject to approval from Mozambique’s government.