Decree N 34/2015 of 31 December defining the terms, terms and conditions of contracts, the practices of oil operations including resource management, safety, health and environmental protection, as well as the submission of plans, reports, data, samples and other information by holders of rights for oil operations.
Defines in your glossary as;
Search– reconnaissance activities as well as other oil operations and use of infrastructure to the extent that such use is intended for oil discovery and evaluation of discovery including drilling.
Petroleum Depot– an accumulation of oil in a geological unit, limited by characteristic, structural or stratigraphic rocks, with contact surfaces between oil and water in the formation or a combination of these in such a way that all oil is in communication under pressure through liquid or gas; or part of a geological unit, such as bituminous shale or coal, containing oil, which has been designed for the purpose of oil research and production.
Discovery– first oil found in a geological structure through drilling, which is recoverable surface by methods employed in the oil industry.
Developer– planning, preparation, construction, installation of one or more oil production infrastructures, including opening wells for the conduct of oil operations.
Demobilisation-planning, preparation and implementation activities for the closure of oil operations, including completion of infrastructure use and removal and disposal.
Oil- crude oil, natural gas or other natural hydrocarbon concentrations
Natural Gas-petroleum which in its normal atmospheric conditions is in the gaseous state as well as unconventional gas including methane gas associated with coal and bituminous shale gas
Grant Agreement: Administrative contract by which the state confers on a Mozambican person or foreign legal person registered in Mozambique the right to carry out oil operations.
Dealer, any person holding the right to carry out oil operations under a concession contract or any legal instrument through which the Government has granted a right to carry out oil operations.
Area of Development and Production- part of the area of the concession contract which, following a commercial discovery, has been outlined.
Grant Agreement Area– area within which the rightholder is authorised to conduct oil operations
Operator-holder of oil operations or undertaking carrying out oil operations on behalf of the concessionaire, and who is jointly responsible for compliance with the applicable legislation.
Well-It means a well underground or at the bottom of the sea by drilling as part of oil operations, executed as the objective of penetrating oil reservoirs, except drilling performed for geoscientific calibration purposes.
Assessment well- a well drilled during the course of an evaluation programme.
Production– the oil extraction activity of underground oil deposits, including drilling for oil production, injection to improve recovery, separation and treatment, including liquefaction, storage, measurement for bulk oil loading and transport and operation and use of the infrastructure for oil production.
Area of discovery-Part of the Grant Agreement Area under a research and production contract within whose limits all or part of the geological structure is contained, outlined on the basis of seismic, geophysical and survey data, where a discovery is located.
Block-Part of a sedimentary basin, formed by a vertical prism of undetermined depth, with a polygonal surface defined by the geographical coordinates of its vertices, where oil exploration or production activities are conducted.
Good PraInduPetr striationOleo- all those practices and procedures that are generally employed in the international oil industry aimed at optimal management of oil resources and prudent oil operations, including the conservation of pressure, ensuring regularity of oil operations and observing the aspects of health, safety, environmental preservation, technical and economic efficiency.
BOE-It means the equivalent of 159 (one hundred fifty-nine) litres of crude oil, under normal atmospheric conditions and 15 (fifteen) degrees Celcius, or what equivalent of barrels of crude oil for every six thousand (6 000) standard cubic feet of natural gas.
Wellhead– It means the accessory at the top of the well surface box connected to the first valve inlet flange after the collector.
Declaration of Commerciality- Report notifying to the government where it concludes, based on the assessment of all data, made by the concessionaire, that an oil deposit is commercially viable or not.
Documentation-Information, data, analyses, interpretations and results relating to oil operations, in paper or electronic format.
Company Affiliate- (Affiliated Company) means, for any person constituting the concessionaire, any parent undertaking which, directly or indirectly, controls that person or any other undertaking which is directly controlled by that person or any undertaking which, directly or indirectly, is controlled by that parent undertaking.
Demobilisation Fund- Fund set up to cover costs associated with the preparation and implementation of demobilisation operations.
Associated Natural Gas- natural gas that exists in a solution such as crude oil or found at the top of the oil deposit, but that during separation and production, becomes gaseous in normal atmospheric conditions.
Gravimetry – It measures the variations of the earth’s gravitational field caused by rocky bodies within the crust to a few miles deep. These variations are influenced by the different densities of the rocks, having the densest, most influence on the gravitational field.
Infrastructure– facilities, including platforms, liquefaction facilities, factories or boats and other equipment for oil operations, excluding supply and support vessels, ships and vehicles carrying oil and bulk. Except otherwise defined, infrastructure also includes cables or pipelines and pipelines.
Jurisdiction Transparent– it is understood as those jurisdictions in which the government independently can verify the ownership, management and control, tax situation of such a foreign legal entity that intends to participate or participate in oil operations.
Magnetometry – This method measures variations in the Earth's magnetic field, attributed to variations in the crust structure or magnetic susceptibility of certain rocks near the surface. This method is used in the prospection of magnetic materials, such as iron ores, especially magnetite.
Petroleum operations – planning, preparation and implementation of the activities of recognition, research, development, production, storage, transport, cessation of such activities or termination of the use of infrastructure, including the implementation of the demobilisation plan, sale or delivery of oil to the point of export or supply stipulating, this being where the oil is delivered for consumption or use, or loaded as merchandise, including in the form of liquefied natural gas.
Operator- the holder of the right to carry out oil operations or an undertaking carrying out oil operations on behalf of the concessionaire, and who is jointly responsible to the concessionaire for compliance with the applicable legislation.
Period of Commercial Assessment- it applies to a coverage area and means the period started at the time when the evaluation report on the evaluation programme for the discovery of natural gas excluding associated natural gas was presented by the concessionaire.
Cost-period the amount of oil produced at the disposal of the concessionaire for the recovery of costs and costs incurred in carrying out the oil operations, as laid down in the concession contract.
Research Period-means any relevant research period provided for in the concession contract.
Period Available- balance of oil produced after deduction of the oil allocated to meet the obligation to pay the oil production tax;
National legal person which is registered in Mozambique and has the seat and effective direction in national territory, whose capital is mostly.
Mozambique– any person established and registered in accordance with Mozambican law, based in the Country and in which their capital belongs in more than fifty-one percent or controlled by private or public, Mozambican national citizens or societies or institutions.
National natural person natural person of Mozambican nationality.
Crude Oil- crude mineral oil, asphalt, ozocerite and all types of petroleum and bitumen, in their natural state either solid or liquid or obtained from natural gas by condensation or extraction, excluding coal or any substance likely to be extracted from coal.
Oil Produced-means oil which is extracted from an oil deposit, initially separated and processed and crude oil, condensed or natural gas and delivered at the delivery point in appropriate condition for subsequent bulk transport or via oil or gas. The same definition will apply to crude oil produced, "condensed produced" and "natural gas produced" as appropriate.
Oil-Lucro- the share of available oil that exceeds the cost oil, which is attributed to the Concessionaires and the Government under the Contracts of Research and Production Grant.
Infrastructure Development Plan– document containing schedule of activities and cost forecasting for construction, deployment and operation of infrastructure, when such activities and cost forecasting are not covered by a Development Plan.
Oil or gas pipeline development plandocument containing the schedule of activities and the forecasting of costs for construction, deployment and operation of a system of a pipeline or pipeline system.
Development Plan- document containing options for the development of an oil deposit, the schedule of activities and cost forecast for the production of oil discovered in an area of concession of exploitation contract and the construction, deployment and operations of infrastructure, where such activities and cost forecast are not covered by a development plan.
Demobilisation plan– document containing options for closing oil operations, reuse or removal of infrastructure collection, including schedule of activities and cost forecasting.
Delivery Point- means, in the case of natural gas, the entry flange of the transport pipeline and, in the case of crude oil, the entry flange of the lifting tanker or, in both cases, any other site that is agreed by MIREME.
Products Petroleum- are derivatives and residues of petroleum refining or processing, such as propane, butane and its mixtures, also called liquefied petroleum gases (LPG), auto petrol, aviation gasoline (avgas), naphtha, lighting oil, aviation oil, gas oil, fuel oils, oils and lubricating masses, paraffins, solvents, bituminous products and any other similar products with other designations and origins that may have the same use, including synthetic products, and compressed natural gas (CNG) and other gaseous fuels intended exclusively for use as a fuel, excluding biofuels.
Programme and Evaluation– A program, following an oil discovery in the concession contract area, which aims to outline the oil deposit to which this discovery refers in terms of measurement of the thickness and lateral extension, and to estimate the existing amount of recoverable oil. This program may include a seismic survey or evaluation of drilled wells to a depth sufficient to penetrate the oil deposit being evaluated or both.
Recognition– geoscientific and geotechnical activities, including drilling at limited depths, which allow preliminary assessment of the oil potential of an area including the acquisition and interpretation of information, samples and data.
Management system organisation, procedures, processes and resources that are necessary to ensure compliance with legal provisions as provided for in applicable legislation.
Oil or gas pipeline system oil or gas pipeline(s), including valve stations, compression or pumping stations and any aggregate infrastructure, built for the transport of oil, excluding pipelines for collecting flows from wells or pipelines for the distribution of crude oil, natural gas or petroleum products.
Flammable substances I substances which in the liquid or semi-solid state have a flash point not exceeding + 55 C regardless of the flash point, fuel and oil (flammable liquids); II Gas that has been inflamed is burned in the air, (Inflammable Gas)
Transport-activities related to the transport of oil through an oil or gas pipeline system, in bulk by vessels or vehicles from production infrastructure to a given point of delivery.
Area of Development and Production- part of the area of the concession contract which, following a commercial discovery, has been outlined.
Grant Agreement Area– area within which the rightholder is authorised to conduct oil operations
Area of discovery-Part of the Grant Agreement Area under a research and production contract within whose limits all or part of the geological structure is contained, outlined on the basis of seismic, geophysical and survey data, where a discovery is located.
Block-Part of a sedimentary basin, formed by a vertical prism of undetermined depth, with a polygonal surface defined by the geographical coordinates of its vertices, where oil exploration or production activities are conducted.
Good PraInduPetr striationOleo- all those practices and procedures that are generally employed in the international oil industry aimed at optimal management of oil resources and prudent oil operations, including the conservation of pressure, ensuring regularity of oil operations and observing the aspects of health, safety, environmental preservation, technical and economic efficiency.
BOE-It means the equivalent of 159 (one hundred fifty-nine) litres of crude oil, under normal atmospheric conditions and 15 (fifteen) degrees Celcius, or what equivalent of barrels of crude oil for every six thousand (6 000) standard cubic feet of natural gas.
Petroleum Depot– an accumulation of oil in a geological unit, limited by characteristic, structural or stratigraphic rocks, with contact surfaces between oil and water in the formation or a combination of these in such a way that all oil is in communication under pressure through liquid or gas; or part of a geological unit, such as bituminous shale or coal, containing oil, which has been designed for the purpose of oil research and production.
Discovery– first oil found in a geological structure through drilling, which is recoverable surface by methods employed in the oil industry.
Developer– planning, preparation, construction, installation of one or more oil production infrastructures, including opening wells for the conduct of oil operations.
Demobilisation-planning, preparation and implementation activities for the closure of oil operations, including completion of infrastructure use and removal and disposal.
Declaration of Commerciality- Report notifying to the government where it concludes, based on the assessment of all data, made by the concessionaire, that an oil deposit is commercially viable or not.
Documentation-Information, data, analyses, interpretations and results relating to oil operations, in paper or electronic format.
Company Affiliate- (Affiliated Company) means, for any person constituting the concessionaire, any parent undertaking which, directly or indirectly, controls that person or any other undertaking which is directly controlled by that person or any undertaking which, directly or indirectly, is controlled by that parent undertaking.
Demobilisation Fund- Fund set up to cover costs associated with the preparation and implementation of demobilisation operations.
Natural Gas oil in normal atmospheric conditions is in the gaseous state, as well as unconventional gas, including methane gas, associated with coal and gas of bituminous shale.
Associated Natural Gas- natural gas that exists in a solution such as crude oil or found at the top of the oil deposit, but that during separation and production, becomes gaseous in normal atmospheric conditions.
Gravimetry – It measures the variations of the earth’s gravitational field caused by rocky bodies within the crust to a few miles deep. These variations are influenced by the different densities of the rocks, having the densest, most influence on the gravitational field.
Infrastructure– facilities, including platforms, liquefaction facilities, factories or boats and other equipment for oil operations, excluding supply and support vessels, ships and vehicles carrying oil and bulk. Except otherwise defined, infrastructure also includes cables or pipelines and pipelines.
Jurisdiction Transparent– it is understood as those jurisdictions in which the government independently can verify the ownership, management and control, tax situation of such a foreign legal entity that intends to participate or participate in oil operations.
Magnetometry – This method measures variations in the Earth's magnetic field, attributed to variations in the crust structure or magnetic susceptibility of certain rocks near the surface. This method is used in the prospection of magnetic materials, such as iron ores, especially magnetite.
Operator-holder of oil operations or undertaking carrying out oil operations on behalf of the concessionaire, and who is jointly responsible for compliance with the applicable legislation.
Petroleum operations – planning, preparation and implementation of the activities of recognition, research, development, production, storage, transport, cessation of such activities or termination of the use of infrastructure, including the implementation of the demobilisation plan, sale or delivery of oil to the point of export or supply stipulating, this being where the oil is delivered for consumption or use, or loaded as merchandise, including in the form of liquefied natural gas.
Operator- the holder of the right to carry out oil operations or an undertaking carrying out oil operations on behalf of the concessionaire, and who is jointly responsible to the concessionaire for compliance with the applicable legislation.
Search– reconnaissance activities as well as other oil operations and use of infrastructure to the extent that such use is intended for oil discovery and evaluation of discovery including drilling.
Oil- crude oil, natural gas or other natural hydrocarbon concentrations
Well-It means a well underground or at the bottom of the sea by drilling as part of oil operations, executed as the objective of penetrating oil reservoirs, except drilling performed for geoscientific calibration purposes.
Assessment well- a well drilled during the course of an evaluation programme.
Period of Commercial Assessment- it applies to a coverage area and means the period started at the time when the evaluation report on the evaluation programme for the discovery of natural gas excluding associated natural gas was presented by the concessionaire.
Cost-period the amount of oil produced at the disposal of the concessionaire for the recovery of costs and costs incurred in carrying out the oil operations, as laid down in the concession contract.
Research Period-means any relevant research period provided for in the concession contract.
Period Available- balance of oil produced after deduction of the oil allocated to meet the obligation to pay the oil production tax;
National legal person which is registered in Mozambique and has the seat and effective direction in national territory, whose capital is mostly.
Mozambique– any person established and registered in accordance with Mozambican law, based in the Country and in which their capital belongs in more than fifty-one percent or controlled by private or public, Mozambican national citizens or societies or institutions.
National natural person natural person of Mozambican nationality.
Crude Oil- crude mineral oil, asphalt, ozocerite and all types of petroleum and bitumen, in their natural state either solid or liquid or obtained from natural gas by condensation or extraction, excluding coal or any substance likely to be extracted from coal.
Oil Produced-means oil which is extracted from an oil deposit, initially separated and processed and crude oil, condensed or natural gas and delivered at the delivery point in appropriate condition for subsequent bulk transport or via oil or gas. The same definition will apply to crude oil produced, "condensed produced" and "natural gas produced" as appropriate.
Oil-Lucro- the share of available oil that exceeds the cost oil, which is attributed to the Concessionaires and the Government under the Contracts of Research and Production Grant.
Infrastructure Development Plan– document containing schedule of activities and cost forecasting for construction, deployment and operation of infrastructure, when such activities and cost forecasting are not covered by a Development Plan.
Oil or gas pipeline development plandocument containing the schedule of activities and the forecasting of costs for construction, deployment and operation of a system of a pipeline or pipeline system.
Development Plan- document containing options for the development of an oil deposit, the schedule of activities and cost forecast for the production of oil discovered in an area of concession of exploitation contract and the construction, deployment and operations of infrastructure, where such activities and cost forecast are not covered by a development plan.
Demobilisation plan– document containing options for closing oil operations, reuse or removal of infrastructure collection, including schedule of activities and cost forecasting.
Delivery Point- means, in the case of natural gas, the entry flange of the transport pipeline and, in the case of crude oil, the entry flange of the lifting tanker or, in both cases, any other site that is agreed by MIREME.
Products Petroleum- are derivatives and residues of petroleum refining or processing, such as propane, butane and its mixtures, also called liquefied petroleum gases (LPG), auto petrol, aviation gasoline (avgas), naphtha, lighting oil, aviation oil, gas oil, fuel oils, oils and lubricating masses, paraffins, solvents, bituminous products and any other similar products with other designations and origins that may have the same use, including synthetic products, and compressed natural gas (CNG) and other gaseous fuels intended exclusively for use as a fuel, excluding biofuels.
Programme and Evaluation– A program, following an oil discovery in the concession contract area, which aims to outline the oil deposit to which this discovery refers in terms of measurement of the thickness and lateral extension, and to estimate the existing amount of recoverable oil. This program may include a seismic survey or evaluation of drilled wells to a depth sufficient to penetrate the oil deposit being evaluated or both.
Recognition– geoscientific and geotechnical activities, including drilling at limited depths, which allow preliminary assessment of the oil potential of an area including the acquisition and interpretation of information, samples and data.
Management system organisation, procedures, processes and resources that are necessary to ensure compliance with legal provisions as provided for in applicable legislation.
Oil or gas pipeline system oil or gas pipeline(s), including valve stations, compression or pumping stations and any aggregate infrastructure, built for the transport of oil, excluding pipelines for collecting flows from wells or pipelines for the distribution of crude oil, natural gas or petroleum products.
Flammable substances I substances which in the liquid or semi-solid state have a flash point not exceeding + 55 C regardless of the flash point, fuel and oil (flammable liquids); II Gas that has been inflamed is burned in the air, (Inflammable Gas)
Transport-activities related to the transport of oil through an oil or gas pipeline system, in bulk by vessels or vehicles from production infrastructure to a given point of delivery.
Oil is a natural substance composed mainly of hydrocarbons, found underground on Earth. It is a widely used energy source for fuels, chemicals and other industrial purposes.
Oil is formed over millions of years by decomposition of organic matter, such as plants and animals, buried in sedimentary layers of the underground. Pressure and heat transform this organic matter into crude oil.
Oil products include gasoline, diesel, kerosene, lubricants, plastics, asphalt, chemicals and more. They are used in various industries, from transportation to manufacturing.
The main oil producing countries are Saudi Arabia, the United States, Russia, Canada, China, Iran, Iraq, United Arab Emirates, Brazil and Kuwait, among others.
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Following the 2nd open competition for the granting of areas for the research and production of hydrocarbons, the companies Anadarko Mozambique Area 1 and the National Hydrocarbon Company were awarded Area 1 in offshore environment of the Rovuma Basin. The area is located in the northern part of Cabo Delgado Province, in shallow to very deep waters. The Hydrocarbon Research and Production Areas Grant Agreement (CCPP) was signed on 20 December 2006 and is effective as of 1 February 2007.
Median estimate of 43 tcf (cubic foot trillions) of gas.
4 Transzonal Reservoirs:
Median estimate of 3.4 (cubic foot trillions) Tcf of natural gas.
Median estimate of 8.4 Tcf (cubulated foot trillions) of natural gas
The Paleocene Reservoirs.
Tigris Shark Discovery Area (1254 km2), has 3 reservoirs of the Cretaceous (K1,K2 and K3), the K2 being the best in Orca and Shark-Tigre and has a median estimate of 0.323 Tcf (cubic foot trillions) of natural gas.
The complete technical evaluation of the potential of the Cretaceous in Area 1, between the Areas of Discovery Tubarão Tigre and Orca, determined that it contains small, discontinuous and low quality reservoirs, and this would probably present significant challenges in the supply of trade amounts of gas. Of the three reservoirs of Cretaceous (K1,K2 and K3) evaluated, the best is K2 in Orca and Shark-Tiger that has an average resource of 0.323 Tcf (cubic foot trillions) of natural gas.
This discovery was made in Area 1 by Anadarko in 2013 through borehole Orca-1, whose reservoir is the age of the Middle Paleocene, was subsequently evaluated by the holes Manta-1, Orca-2, Orca-3 and Orca-4.
The discovery is located about 10 km from the coast line, 250 km from the city of Pemba. This reservoir is of Middle Paleocene age and is not shared. The average estimate of resources is about 8.4 Tcf (cubulated foot trillions) of natural gas in situ, according to estimates submitted by Total.
The reservoir in the Orca discovery lies at depths ranging from 4000 to 5000m below the mid sea level, and the water column from about 600m to 1200m. The extension is about 30 km.
This discovery was made by Anadarko in January 2011 through the Jaw-1 hole and evaluated by the Shark-2 hole (negative) in 2013. The discovery is located about 25 km from the coast line, 50 Km of the Northeast of the district of Mocímboa da Praia and 200 Km of the Northeast of Pemba City.
The reservoir is completely in Area 1. The average estimate of resources is about 3.4 tcf (cubic foot trillions) of gas in situ.
The reservoir is at a depth of 3500 to 4000 metres below the average sea level. The water column ranges from 800 to 1200 meters. The extent of the Shark discovery is about 20 km east-oriented.
