Statoil farms down Mozambique licence to Tullow

Statoil farms down Mozambique licenceStatoil has farmed down a 25 per cent stake to Tullow Oil (Image source: Harald Pettersen/Statoil)Statoil has farmed down a 25 per cent working interest in its operated exploration licence offshore Mozambique to Tullow Oil plc

The licence, which consists of two blocks under one agreement, is located in areas 2 and 5 offshore Mozambique in the Rovuma basin.

Nick Maden, senior vice-president of Exploration International at Statoil, said, “The farm-down reflects the attractiveness of Statoil's acreage in Mozambique and having Tullow onboard allows us to share the geological risk while retaining a significant working interest.”

The blocks are located in a frontier area with a water depth varying between 300 and 2,400 metres. The area covers 7,800 sq km.

“Our presence in Mozambique is in line with Statoil's exploration strategy focusing on early access in a prolific region. Large gas discoveries have recently been made north of our acreage and the prospectivity for hydrocarbons in the Statoil operated blocks is promising,” added Maden.

Statoil operates the licence and has retained a 65 per cent working interest after the farm-down. The remaining 10 per cent interest is held by Empresa Nacional de Hidrocarbonetos (ENH), which manages the exploration phase. ENH has waived its pre-emption right and approved the agreement.

The Mozambique government has also granted approval for the farm-down, subject to the tax authorities' opinion on applicable transaction taxes.

The partnership is now preparing to spud the first well in the licence, scheduled for 2013.

Statoil has been present in Mozambique since 2006 and recently farmed into Tullow's operated asset in Suriname, Block 47, with a 30 per cent working interest.

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