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Viewing cable 06MAPUTO326, TEXAS TEA FOR TWO - MOZAMBIQUE AND US COMPANY

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Reference ID Created Released Classification Origin
06MAPUTO326 2006-03-14 12:57 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Maputo
VZCZCXRO8086
PP RUEHDU RUEHJO RUEHMR
DE RUEHTO #0326 0731257
ZNR UUUUU ZZH
P 141257Z MAR 06
FM AMEMBASSY MAPUTO
TO RUEHC/SECSTATE WASHDC PRIORITY 5132
INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
RUCPDOC/DEPT OF COMMERCE WASHDC
RHEFDIA/DIA WASHINGTON DC
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHINGTON DC
RUEAIIA/CIA WASHDC
RHEHNSC/NSC WASHDC
UNCLAS MAPUTO 000326 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
AF/S FOR HTREGER 
PASS USTR FOR PATRICK COLEMAN 
MCC FOR SGAULL 
 
E.O. 12958: N/A 
TAGS: ECON ETRD EPET EINV MZ
SUBJECT: TEXAS TEA FOR TWO - MOZAMBIQUE AND US COMPANY 
ANADARKO HOPING FOR OIL 
 
Sensitive but Unclassified - Not for Internet Distribution. 
 
1. (U) Summary.  On March 8th the Government of Mozambique 
and the U.S. oil company Anadarko Petroleum announced that 
Anadarko had won its bid for exploration and production 
rights to an offshore block in the Rovuma Basin, off the 
Mozambique - Tanzania border.  Anadarko's concession is 
expected to be finalized and a signing ceremony held by June. 
 Four other companies also won bids for concessions.  End 
Summary. 
 
2. (U) On July 15th, 2005, the Government of Mozambique, via 
its National Petroleum Institute (INP), launched the 
Mozambique Second Licensing Round in London and opened up the 
Rovuma Basin for exploration concession bids.  The Rovuma 
Basin is approximately 250 miles long and 100 miles wide, and 
is centered on the Rovuma Delta near the border between 
Mozambique and Tanzania.  For purposes of exploration and 
production, the Government of Mozambique divided the Basin 
into seven blocks, one onshore and six offshore.  Norsk 
Hydro, a Norwegian company, received concessions to two of 
the offshore blocks in February of this year as a result of 
direct negotiations. 
 
3. (U) Seven companies bid on the five remaining blocks.  In 
addition to Anadarko, the following six companies presented 
bids:  Rockover (South African), ENI (Italy), Norsk Hydro 
(Norway), Petronas (Malaysia), Petrobras (Brazil) and Artumas 
(Canada).  The Government of Mozambique awarded Anadarko 
exploration and production rights to Area 1.  Petronas won 
rights to contiguous Areas 3 and 4, ENI to Area 4 and Artumas 
to the onshore block. 
 
4. (U) Anadarko's 2.64 million-acre block includes 
approximately 90,000 onshore acres and stretches eastward 35 
miles offshore.  The block starts at the Tanzanian border, 
extends southward 100 miles, has water depths that reach down 
to 6,000 feet and is approximately 460 times the size of a 
typical Gulf of Mexico block.  Anadarko states that it has 
been reviewing seismic, well and other geologic date for the 
last three years and believes that the Basin "is similar in 
nature to the proven world-class petroleum systems of the 
Niger Delta, Mahakam Delta and the Gulf of Mexico." 
 
5. (SBU) Mr. Mabote, Chairman of INP, informed the Embassy 
that the GRM preferred Anadarko's bid by a very large margin 
over those of its competitors.  Bids were assessed based on 
the company's technical and financial capacity, proposed 
development and research programs, proposed community 
contributions and environmental experience.  Anadarko's bid 
included a four-year initial exploration term with options to 
extend that phase another four years, as well as a 30-year 
production term in the event of commercial discoveries. 
Anadarko believes that it has already identified multiple 
leads within the block. 
 
6. (U) Comment.  The Rovuma Basin is one of the few remaining 
unexplored, geologically-promising basins in the world, 
according to Anadarko.  A large-scale discovery could 
radically transform Mozambique.  It may be several years, 
however, before exploration yields positive results -- if 
ever.  For the moment, though, Anadarko tells us "we now have 
a lot of work to do." 
La Lime