Statoil farms down in Mozambique licence

Statoil has farmed down a 25% working interest in its operated exploration licence offshore Mozambique to Tullow Oil plc (Tullow).
The licence, which consists of two blocks under one licence agreement is located in area 2 and 5 offshore Mozambique in the Rovuma basin.
"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," says Nick Maden, senior vice president in Exploration international in Statoil.
The blocks are located in a frontier area with a water depth varying between 300 and 2,400 metres. The area covers 7,800 square kilometres.
"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," adds Maden.
Statoil operates the licence and retains a 65% working interest after the farm down. The remaining 10% interest is held by Empresa Nacional de Hidrocarbonetos (ENH) which is carried through the exploration phase. ENH has waived its pre-emption right and approved the agreement.
The commercial terms of the transaction are confidential. The Government of Mozambique has granted approval subject to the Tax Authorities' opinion on applicable transaction taxes.
The partnership is now preparing to spud the first well in the licence which is 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% working interest.
Source: Statoil