*
north of Lourenco Marques. The contract gave the company exclusive
rights to prospect in a certain region.  It was required to invest
10,000 contos in the first year, 20,000 in the second year and 40,000
in the third* The contract was renewable, and if the search was successful could be prolonged for 40 years*  In March of the same year it
was announced that the company had been granted an offshore concession ^
covering 18,800 km. around the mouth of the Zambezi river* The exploratory period was five years with a possible renewal for a further three.
The company is required to spend $2.5 million in the first three years.
In February this year, the company signed an 'accord general' with the
Portuguese authorities for prospecting in the area between Beira and
Quelimane.  It will invest about 12 million francs in the preliminary
research.  It expects to discover deposits capable of producing 30,000
barrels of crude oil a day or more and will thus put in a 'surprime' of
15 million escudos (2*5 million francs).
In December, 1967, the Societe Nationale des Petroles d'Aquitaine
(S.NvPoAo), the Entreprise de Recherches et d'Activites Petrolieres
(ERAP,' a French state concern), and the Anglo-American Corporation
of South Africa were jointly granted a concession to prospect for oil
and natural gas over an area of 15,000 square miles in southern Mozambique.  In April, 1968, the West German company Gelsenkirchen Bergwerks
Aktiengesellschaft, was authorised by a decree* of the Overseas Minister
to take over ERAP's part of the concession*  If oil is found a 40 year
exploitation concession will be granted*  In May, 1969, the same group
signed a further contract with the Portuguese Overseas Minister.
In January, 1968 Portugal granted large concessions in Mozambique to
the American company Texaco Inc. These included a large area in the
far north near the Royuma river, and south along the coast including an
offshore site. One source commented, "Since parts of this area harbour
'rebel groups', observers in Lourenco Marques question how easily the
work can be done". The Sunray Mozambique Oil Co* started a three-year
project searching for oil and natural gas on the 'littoral' of Inhambane,
at a cost of £1,470,000.  It has now concluded its seismographic study
and the data has been sent to the U*S*A* for examination* Sunray is
also operating a joint venture.with Skelly Oil (U.S.) and Clarck Oil and
Refining Co* In an oil concession granted to the Anglo-American Co*
of South Africa one fifth of Gorongosa Park, one of the most famous wildlife reserves in Africa, has been handed over. More recently it was
announced that the Italian state company, Agip had completed exploratory
investigation of semi-detailed surveys and exploratory surveys over an
area of 21,000 km. bounded by the Mozambique Canal on the east and the
city of Majunga on the West.
64