By OGJ editors
HOUSTON, Dec. 21 -- Anadarko Petroleum Corp. has signed a contract with Mozambique for exploration and production of a block in the Rovuma basin in northeastern Mozambique.
Anadarko was awarded the 2.64 million-acre block, known as Offshore Area 1, earlier this year in Mozambique's second licensing round.
The block includes about 90,000 onshore acres and extends offshore 35 miles eastward in water as deep as 6,000 ft. It borders Tanzania to the north and extends southward about 100 miles.
Only two wells have been drilled in the area, said Bob Daniels, Anadarko senior vice-president of worldwide exploration.
The contract commits Anadarko to a 5-year initial exploration term, with options to extend that phase for 3 years, and permits a 30-year production term following any commercial discoveries.
Anadarko was awarded the block on the basis of a work commitment to acquire new 2D and 3D seismic and drill seven wells during the initial exploration term.
"Through our regional evaluation and analysis of existing seismic data covering most of the block," Daniels said, "we have already identified multiple leads across an area equivalent in size to 460 typical Gulf of Mexico lease blocks."
Anadarko will operate the block initially with a 100% working interest.