Oil Hunted in Mozambique After World’s Largest Gas Discoveries

From Bloomberg

By Eduard Gismatullin

Statoil ASA (STL) and Tullow Oil Plc (TLW) are finishing a well aimed at achieving the first commercial oil discovery in Mozambique, the East African country where explorers have made the century’s largest natural gas finds.

The partners’ Cachalote well off Mozambique is drilling past potential gas fields and looking for crude discoveries further under the seabed, Tullow Exploration Director, Angus McCoss said in an interview yesterday. The well is expected to be finished later this month.

“We think that some of the deeper plays” may have oil, McCoss said. “That’s what the focus of that campaign is in trying to find the elusive oil offshore East Africa.”

Anadarko Petroleum Corp. (APC) and Eni SpA (ENI) have found more than 100 trillion cubic feet of gas off Mozambique, enough fuel to build the world’s second largest liquefied natural gas plant. Oil, which explorers prefer because it’s easier and cheaper to ship to customers, has been harder to find. In 2010, Anadarko’s Ironclad well showed evidence of oil without making an economically viable discovery.

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