In Mozambique on the east coast of Africa, a grand narrative about the future of energy is unfolding. With China National Offshore Oil Corporation (CNOOC) about to start drilling operations in March, this once silent sea area is about to usher in new vitality. Esteban Pale, the Minister of Mineral Resources and Energy of Mozambique, announced this heavyweight news to the world at the Mining Conference in Cape Town, South Africa. This is not only another milestone for Chinese companies to expand overseas, but also a crucial step in Mozambique's energy strategy. From the deep waters of the Ruwuma Basin to the vast waters of the Savoy Sea, China National Offshore Oil Corporation's drilling rig is about to explore the seabed, searching for dormant energy treasures.

Background of Cooperation and Block Details

This drilling operation originated from the sixth round of public bidding launched by the Mozambique government in November 2021. China National Offshore Oil Corporation (CNOOC) has successfully obtained oil and gas block concessions in the Sava Sea area (S6-A, S6-B) and Angoche Sea area (A6-G, A6-D, A6-E). These blocks are located in the deep-water area of the Ruvuma Basin in the northern part of the country, with a total area of over 92000 square kilometers. Mozambique National Oil Company (ENH) participated as a partner, and the relevant contract was approved and signed in March 2024. Minister Paley stated that the initial operations will cover five to six blocks, and drilling work will soon begin. Preparatory work for exploration will begin in March.

Mozambique Energy Landscape and Project Progress

Mozambique has three large-scale exploration projects approved in the Rovuma Basin. In addition to the new project of CNOOC, the "Coral South" floating liquefied natural gas facility operated by Eni has been running smoothly since its commissioning in 2022. The plan is to double the production capacity through the second floating platform "Coral North". The investment for this platform was approved in October last year, with a total amount of 7.2 billion US dollars. Total Energy's "Mozambique LNG" project (Block 1) has officially resumed operations in January 2026 after a four-year suspension due to the security situation at Cape Delgado. It is expected to have an annual production capacity of 13 million tons starting from 2029. The "Ruvuma Liquefied Natural Gas" project (Block 4) led by ExxonMobil plans to invest $30 billion and is expected to be put into operation after 2030.

Future prospects and strategic significance

Minister Paley also stated that the government has no plans to launch a new round of oil and gas block bidding, as there are still many blocks that have not been developed in the previous round of bidding and cooperation can still be promoted through direct negotiations. The block won by CNOOC this time does not include Block 1 and Block 4, which were developed by Total Energy and ExxonMobil respectively. This means that Chinese companies have opened up new positions in Mozambique's energy landscape. This cooperation will not only enhance China's voice in the global energy market, but also drive the development of the local economy in Mozambique, achieving mutual benefit and win-win results.Editor/Yang Meiling