State-owned Indian Oil Corporation (IOC) has partnered Delonex Energy, a new Africa-focused oil and gas explorer led by former Cairn India chief Rahul Dhir, to win its maiden oil block in Mozambique.
IOC and Delonex were awarded onshore Block P5-A in southern Mozambique, a company executive said.
Russia’s Rosneft and ExxonMobil have won rights for three offshore blocks.
Other companies that have been awarded areas as operators include Italy’s Eni and South Africa’s Sasol.
Officials said Delonex would operate the 9,988 square km Area P5-1 in the Palmeira basin, while IOC will hold 20 per cent interest. Mozambique’s national oil company ENH will hold the remaining 10 per cent. The partners have committed $20 million in first phase of exploration, which will last three years.
Mozambique had on October 23, 2014 launched its fifth licensing round offering 15 petroleum concessions.
The licensing round was delayed for more than two years while new petroleum laws were being finalised. The bids were to close on April 30, 2015 but were delayed to July 30.
Out of the eight applications, Mozambique’s upstream regulator awarded only six contract areas. IOC-Delonex were the sold bidder for onshore Block P5-A.
Dhir has got private equity firm Warburg Pincus to commit up to $600 million for the oil and gas explorer he had floated.
