Japanese Firm Acquires $141m Stake in Mozambique Oil Block

Japanese firm Mitsui & Co has agreed to buy a 20 percent stake in a gas and oil exploration block in Mozambique, according to a company statement received by APA on Wednesday.

The block, which covers about 10,700 square km is situated off the north coast of Mozambique.

“The deal is worth some $141 million and is subject to approval from the Mozambican authorities”, reads the statement.

State-run Japan Oil, Gas and Metals National Corp (JOGMEC) said in a separate statement it would provide 75 percent of Mitsui’s expected costs, or $109.5 million by 2011.

The deal would mark the first time a Japanese company has participated in commercial exploration activities in Mozambique, Mitsui said.

Mitsui said a seismic and geological survey and drilling of exploration wells will take place over the next four years in Area block 1.

Canada’s Andarko Petroleum will keep a 56.5 percent stake in the block in the Rovuma exploration area in which Mitsui E&P Moçambique Area 1 Ldt will have 20 percent, Empresa Nacional de Hidrocarbonetos will have 15 percent and Artumas Group Inc will have 8.5 percent.

Mitsui & Co. is involved in operations in Oceania, the Middle East, Southeast Asia and North America.

Source African Press Agency

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