The resumption of drilling for natural gas exploration in the Búzi Block, in Sofala province, is still conditioned to developments in Covid-19.
Gas exploration in this area of the Mozambique Sedimentary Basin started in January last year, with two wells expected to be drilled. However, work was interrupted at the end of the first quarter following the declaration of a state of emergency in the country and restrictions imposed on international connections.
Figures released at the time of the interruption of work indicate that it is a complex activity carried out by a considerable number of workers, including expatriates, who due to the need to comply with procedures established by the government relating to the entry and exit of goods and people in national territory will not be able to carry out the necessary rotation.
A source from the National Petroleum Institute (INP) said that since the interruption of activities, work in the area has been limited to maintenance of the platform, while waiting for the operational technical staff, which depends on Covid-19’s point of evolution.
Located in the Mozambique Sedimentary Basin, more precisely in the Búzi district, south of Sofala province, the Búzi Block has indications of the presence of gas detected 53 years ago. In 2008, the Mozambican government admitted the start of prospecting for this resource, and some boreholes were drilled with Indonesian support.
At the moment, the work is in the hands of the Indonesian company Buzi Hydrocarbons, which holds 75% of the rights to the Búzi Block. Under the terms of the contracts, the company is a partner of Empresa Moçambicana de Hidrocarbonetos, the State’s business arm in the area of oil, which holds the remaining 25%.
The Mozambique Sedimentary Basin is one of the least active in terms of oil exploration at the moment. The only commercial exploration for natural gas in the vicinity is being done by Sasol, which exports much of the resource to South Africa.
Some of the hydrocarbon is used in Mozambique through projects to generate electricity and power cars in the cities of Maputo and Matola. Through a production sharing agreement, the Government and Sasol are mobilising resources to make the Temane Thermoelectric Power Plant project viable, with capacity to generate 400 MW, as well as a small refinery to fill cooking gas canisters, which may contribute to the massification of the use of this resource in the country.
