After many years of civil warfare and political instability, Mozambique is returning to a state of normality and consequently its upstream oil and gas trade is of rising significance in the area. Mozambique’s upstream potential appears to lie in natural gas relatively than oil. The important factor sooner or later exploitation of the nation’s fuel, however, is the emergence of sound commercial standards for the institution of a south-east African gasoline-gathering community able to serving creating markets within the area.
Substantial reserves of natural gasoline have been established and Mozambique is prone to turn out to be a major producer of gas in the area in the medium term. There are three onshore gasoline fields, Pande, Temane and Buzi-Divinhe. Pande has reserves estimated to be in excess of 2.1 Tcf,, Temane reserves in the order of 1.0 Tcf and Buzi has recoverable reserves within the order of 10Bcf. Actual gasoline production is proscribed to an insignificant quantity from the Pande fuel area that provides the needs of local villages.
Mozambique launched its First Offshore Licensing Round on 31 March 2000. This bidding round is providing 14 blocks mainly within the Mozambique Basin covering the shallow and deep Zambezi delta area.
The main gamers within the upstream industry embody: Enron Oil and Fuel Sources Inc, Vitality Africa, Sasol Petroleum Worldwide, Leopardus Assets Restricted, Zarara Petroleum Sources, TotalFinaElf SA, Trefoil Ltd, and Lonrho de Provuma Petroleum. BP, Elf and Western are involved in geophysical surveys of offshore areas.
The downstream oil trade depends on imports, mostly from South Africa. Distribution and advertising and marketing of fuel products and lubricants is carried out by the state owned oil company Petromoc. Other companies embody BP, Mobil, Caltex.
There are three ports in Mozambique, Maputo, Beira, and Nacala which provide an financial provide corridor to neighbouring landlocked countries.
A serious challenge is being negotiated between ENH, the state oil company, Sasol Petroleum International and Enron Oil and Gasoline to construct a pipeline that may transport gasoline from both the Pande and Temane fuel fields to the Gauteng area in South Africa. The pipeline between Beira and Harare has been prolonged and is working close to full capability even with an growth by means of the addition of pumping stations.
