PETRONAS BAGS OIL EXPLORATION & PRODUCTION CONTRACT IN MOZAMBIQUE

KUALA LUMPUR, Oct 13 (Bernama) -- Petronas has bagged an exploration and
production concession contract (EPCC) in the Rovuma Basin in Mozambique, for two
of its exploration blocks, signifying another milestone for them in African
region.

The national oil corporation said it was awarded the contract together with
Empresa Nacional de Hidrocarbonetos de Moçambique (ENH), the national oil
company of Mozambique.

The EPCC for offshore Blocks Three and Six was signed by Petronas'
wholly-owned subsidiary PC Mozambique (Rovuma Basin) Ltd (PCMRB) with ENH and
the Mozambique Government last Friday, it said in a statement here
today.

Under the terms of the EPCC, PCMRB will hold a 90 percent interest in both
blocks, which are located in the Rovuma Basin, while ENH will own the remaining
10 percent interest. PCMRB has been designated the operator for the
Blocks.

During the first phase of the exploration period, PCMRB would reprocess 150
line-kilometres of 2D seismic data and acquire 7,000 line-kilometres of 2D
seismic data and 120 samples of geo-chem cores.

For the initial three years, the contractor would spend about US$5.6
million
(US1=RM3.494) for the blocks' geological and geophysical evaluation.

Petronas first entered Mozambique's upstream oil and gas industry when it
was awarded a contract for offshore Zambezi Delta Block in June 2002.
-- BERNAMA