1. Mozambique Second License Round Overview - AAPG 2006

2. Mozambique Second Licensing Round
The Mozambique License round which was focussed on the under explored Rovuma Basin (both onshore and offshore) in the Cabo Delgado Province of Northern Mozambique,
The license round used integrated geotechnical studies carried out by PGS Reservoir based on the available seismic program together with gravity, magnetic and satellite data. These studies show the offshore sector of the Rovuma Basin to be extremely prospective and identified potential for commercial hydrocarbon accumulations.
The license round has been a tremendous success for Mozambique and the Institute of National Petroleum.

3. Introduction to Mozambique
Location: South-eastern Africa
Land area: approximately 800,000 Km2
Coastline: Approximately 2,700 Km
Onshore sedimentary area: 290,122 Km2
Offshore sedimentary area: 282,227 Km2
Population: ( INE)
Climate: Sub-tropical to tropical
Capital: Maputo
Over 60 Rivers & Lakes
Official Language: Portuguese
Natural Resources: Hydropower, natural gas, coal, minerals, raw wood, agriculture
Export: prawn, cashew, sugar, tea, coconut oil, cotton
Currency: Metical (MZM)
PIB per capita: US$ (1998)
PIB growth: 9% (1999)
MOZAMBIQUE
MAPUTO
INP_ Instituto Nacional de Petróleos

4. Mozambique 2nd License Round
Rovuma Basin
The Rovuma Basin is about 400 km long and 160 km wide (250 by 100 miles).
The Rovuma Basin extends from the port of Nacala in to Southern Tanzania.
The basin is located both onshore and offshore and within Mozambique covers over 30,000 sq.km (12,000 sq. miles).

5. Mozambique 2nd License Round
Rovuma Basin
The Rovuma Basin is about 400 km long and 160 km wide (250 by 100 miles).
The Rovuma Basin extends from the port of Nacala in to Southern Tanzania.
The basin is located both onshore and offshore and within Mozambique covers over 30,000 sq.km (12,000 sq. miles).
The Rovuma basin has been divided into seven areas, one area onshore and six areas offshore

6. Mozambique Second License Round – Rovuma Basin
Over 36,000 sq km
Under explored
Water depths from 0 to >2,500m
Deep water never licensed
Onshore ,122 sq km
Area ,683 sq km
Area ,646 sq km
Area ,089 sq km
Area ,161 sq km
NB: Areas 2 & 5 Hydro

7. Contracts Available in Mozambique
Petroleum Operations in Mozambique may only be conducted in accordance with either a:
Reconnaissance Concession Contract
Allows the holder the right to conduct preliminary work and assessment operations in the area subject to the Concession Contract. Is executed on a basis of exclusivity for a maximum two-year period and permits the drilling of wells to a depth of 100 meters below the surface or the bottom of the sea.
Exploration and Production Concession Contract
An Exploration and Production Concession Contract gives an exclusive right to conduct Petroleum Exploration and Production activities as well as the non-exclusive right to operate petroleum pipelines.
Petroleum Pipeline Concession Contract
A Petroleum Pipeline Concession Contract grants the right to construct and operate an Oil Pipeline or a Gas Pipeline for the purpose of transporting Crude Oil or Natural Gas in cases that such are not covered by an Exploration and Production Concession Contract.

8. Schedule – Mozambique Second Licensing Round
15th July - Second License Round Announced
14/18th Nov - Clarification Meetings
31st January - Applications submitted
6/16th February - Company Technical Presentations
15th March - Award Letters ( EPC negotiation )
May / June - Signing Ceremonies, Maputo

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TECHNICAL DATA

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Rovuma Technical Data
All Technical Data was made available for the bidding round:
Data Rooms London (PGS) & Maputo (INP)
Landmark Project
SMT Kingdom Project
Data Packages include:
Information CD (Application Guide & Petroleum Law))
Technical (Interpretation) Reports
Digital Well Data
Digital Seismic Data
Potential Field Data
Field Work / Field Visits

11. Existing Technical Work
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Existing Technical Work
The technical work programme from 1998 onwards was carried out by PGS Reservoir for Lonropet.
Geophysics Report
Interpretation of the 1998 Marine Seismic
Program (3 Volumes)
Geology Reports
Field Work Report I 1996
Field Work Report II 1999
Field Work Report III 1999
Field Work Report IV 2000
Field Work Interpretation Report 2000
Geology of the Rovuma Basin 2000

12. Mozambique Technical Data
New Digital Database
Index
Technical Reports (new digital library)
Presentations
GIS (Geographic Information System)
Well Data
Seismic Data
Potential Field Data (Gravity Magnetic)
Satellite Data
Field Work
The round has funded the creation of modern “Digital Database” for INP

13. 9/14/2018 9:02 AM
Technical Summary
The initial exploration of the Rovuma Basin has shown it to be a multi-play and multiple prospect area with direct HCI’s
Exploration in the Rovuma is high risk but high reward
The most outstanding features identified are the “Tertiary Delta” in the north and the “Ibo High” horst trend in the south
Sedimentary basin extends into Mozambique Channel offering multiple play potential with evidence of effective petroleum systems in deep-water areas
Source and Reservoir rocks have been sampled and identified within the Rovuma Basin
The Rovuma Basin has the potential to contain a world-class hydrocarbon accumulation

15. NEW APPLICATION DOCUMENTS
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NEW APPLICATION DOCUMENTS

16. APPLICATION DOCUMENTS
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APPLICATION DOCUMENTS
Appendix A - Applicant Details and Financial Information
Appendix B - Technical Application Summary
Appendix C - Financial Proposal
Appendix D - Health Safety Environment

17. Technical Application Summary
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Technical Application Summary

18. Applicant Details and Financial Information
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Applicant Details and Financial Information
APPENDIX A
Appendix A contains financial information about the applicant and is required to support applications for a Reconnaissance Concession Contract, an Exploration and Production Concession Contract or a Pipeline Concession Contract. Where there are two or more companies on an application, we require an Appendix A from each company separately.

19. Technical Application Summary
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Technical Application Summary
APPENDIX B
Appendix B demonstrates the applicant’s plans to work and evaluate the acreage.
Note this forms a crucial part of the application – see evaluation criteria.

20. Financial Proposal APPENDIX C
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Financial Proposal
APPENDIX C
The proposal of the applicant for work and minimum expenditure in respect of the exploration area (s) specified in the application must be stated.
Definite proposal with respect to all negotiable items as contained in the Model Exploration and Production Concession Contract must be stated, including bonus payments, training, institutional support that may be applicable.

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Appendix C

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Appendix C
TRAINING
Annual contribution for INP staff training & development
INSTITUTIONAL SUPPORT
Contribution to build expertise and capacity within the whole of the Mozambique Petroleum sector
SOCIAL SUPPORT
Recent introduction no historical figures available

23. Application Guidelines
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Application Guidelines
INTRODUCTION
LEGAL & FISCAL DOCUMENTS
APPLICATION DOCUMENTS
SUBMITTING AN APPLICATION
BID EVALUATION CRITERIA
GEOTECHNICAL DATA

24. Mozambique Second License Round
“may, I also take this opportunity to congratulate you on the quality of the data packages and the organisation of the data rooms for the Rovuma Licensing Round, both were first class and clearly demonstrate to the oil industry the professionalism & enthusiasm of the INP.”
Nigel Hanwell
Hardman Resources Ltd.

25. 9/14/2018 9:02 AM
Applications

26. Mozambique Second Bid Round - Applications
Seven bids were received by INP

27. EPC – Example Work Program
EXPLORATION WORK PROGRAM (maximum term of 8 years)
Initial Exploration Period - 24/36/48 months
2nd Exploration Period - 12/24/36 months
3rd Exploration Period - 12/24 months
DEVELOPMENT & PRODUCTION (maximum term of 30 years)

28. BID EVALUATION CRITERIA
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BID EVALUATION CRITERIA
The technical competence and financial strength of the applicant to be able to carry out exploration and production of hydrocarbons to legal requirements and industry standards.
The technical database used in making the application.
Minimum work program and exploration expenditure. Preference will be given to bids that include 3D seismic over identified prospects and commitment wells.
Economic terms offered by the Company.
Strength of the proposed Health, Safety and environmental protection.
Level of institutional support and training.
INP publish final details of the evaluation criteria by the end of October 2005.
Important Note:
INP encouraged companies to present a technical proposal that will maximize the knowledge of the petroleum potential of the Rovuma Basin.

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Bid Evaluation
The bids have been evaluated against the following criteria.
Company Strength
Technical Expertise
Technical Work Program
Financial Proposal
HSE

30. Mozambique Second Bid Round – Results
Onshore - Artumas
Area 1 - Anadarko
Area 4 - ENI
Area 3 - Petronas
Area 6 - Petronas
Area 2 - Norsk Hydro *
Area 5 - Norsk Hydro *
* Areas previously awarded

31. Artumas + Petrobras + Rockover
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Onshore
Area
Onshore Area
Artumas + Petrobras + Rockover

32. Onshore Area - Artumas Onshore Area - 15,122 sq km
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Onshore Area - Artumas
Onshore
Area
Ref: Artumas Press Release – March 9th 2006
Onshore Area - 15,122 sq km
Work program includes;
250 km 2D
1 well (11,500 feet)
The Onshore Area offsets Artumas Mnazi Bay concession in Tanzania
The Area contains the Mocimboa-1 well

33. Well Ties Mocimboa 1 - Esso / Shell 9/14/2018 9:02 AM
Mocimboa-1: the only well drilled in the Mozambican part of the basin, drilled onshore by Esso to a TD of 3,493m in 1986 with strong gas shows, and possibly condensate in Albian sands (fan complex).

34. Reprocessed – Onshore Seismic Data
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Reprocessed – Onshore Seismic Data

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Field Work Summary
Sampled potential source rocks within the Cretaceous.
Sampled good quality reservoir rocks with high porosity
Sampled several oil seeps
Sampled gas seeps
Discovered Jurassic
sediments within the
Rovuma

36. Anadarko + Artumas ENI + Petrobras
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Area 1
Area 1
Anadarko + Artumas
ENI + Petrobras

37. Area 1 - Anadarko Area 1- 10,683 sq km Water Depth - Onshore to 1,800m
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Area 1 - Anadarko
Area 1
Ref: Anadarko Press Release – March 8th 2006
Area ,683 sq km
Water Depth - Onshore to 1,800m
Work Program Includes
7 wells
2D Seismic
3D Seismic
4 year initial period

38. Rovuma Basin Play Fairways
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Rovuma Basin Play Fairways
Rovuma Delta
Reservoirs and seals
Tertiary deltaic sands
Seals
Tertiary marine shales
Source
Jurassic and Cretaceous shale
Ibo High
Reservoirs
Karroo, Jurassic & Cretaceous
Seals
Karroo intraformation shale
Transgressive Jurassic and Cretaceous shales
Source
Karroo shale
Middle to Upper Jurassic Palma
Embayment and Rovuma Basin shale
Note: Map shows old Lonropet Permit

39. Play Types: Tertiary Delta Area
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Play Types: Tertiary Delta Area

40. Play Types: Tertiary Delta Area
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Play Types: Tertiary Delta Area

41. Play Types: Tertiary Delta Area
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Play Types: Tertiary Delta Area

42. Play Types: Tertiary Delta Area
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Play Types: Tertiary Delta Area

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Area 4
Area 4
ENI

44. Area 4 - ENI www.eni.it Area 4 – 17,646 sq km Deep Water Rovuma Basin
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Area ENI
Area 4
Ref: ENI Press Release – 10th March 2006
Area 4 – 17,646 sq km
Deep Water Rovuma Basin
(> 2,600m)
“This initative is part of ENI’s strategy to identify new areas with high potential. Area 4 lies in a completely unexplored and high potential geological basin”

45. Rovuma Basin Area 4 - ENI W E 9/14/2018 9:02 AM 6.0 3.0 9.0 10 km
‘DAVIE GRABEN’
OLIGO-MIOCENE UNC
TOP CRETACEOUS
BREAK-UP UNC
BASEMENT
ROVUMA SHELF
‘DAVIE HIGH’

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Area 3 6
Area 3 & 6
Hydro + Petronas

47. Area 3 - Petronas Area 3 - 6,089 sq km Area 6 - 9,161 sq km
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Area 3 - Petronas
Area 3 6
Area ,089 sq km
Area ,161 sq km
No Petronas press release available

48. Note: Map shows old Lonropet Permit
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Areas 3 & 6
Half Graben Leads
Very limited seismic data
Note: Map shows old Lonropet Permit

49. Area 3 & 6 – East West Seismic Line
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Area 3 & 6 – East West Seismic Line

50. Mozambique Second License Round
Summary
Mozambique Second License Round

51. Rovuma Basin Work Program Summary
Environmental Studies
Drop Core Sediment Evaluation
9 confirmed wells to be drilled in the Rovuma Basin
> 4,000 sq km of 3D seismic data
> 10,000 km of 2D seismic data
All existing seismic data to be reprocessed
Total confirmed expenditure for the first exploration period will be a minimum of 314 million dollars
INP will release further details on signature of the EPC

52. Rovuma Basin Work Program Summary
TRAINING
Contribution for INP staff training & development
Bids Total ~ 1 Million Dollars per year
INSTITUTIONAL SUPPORT
Contribution to build expertise and capacity within the whole of the Mozambique Petroleum sector
Bids Total ~ 2 Million Dollars per year
SOCIAL SUPPORT
Recent introduction no historical figures available
Bids Total ~ 5 Million Dollars over 4 years

53. What Next ? Mozambique 3rd License Round
Mozambique 3rd License Round Under Consideration
Increased interest in East Africa
Focus on Southern most part of Mozambique

54. Thank you for your attention
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Thank you for your attention
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