The discovery of massive gas resources in Mozambique by Italy's Eni and Anadarko of the US could potentially catapult the nation into the global major league of gas exporters.
Both companies say the reserves are suitable for large-scale LNG projects, which will represent the largest foreign investment ever made in the impoverished former Portuguese colony.
Farther north, in Tanzania, oil and gas companies continue to add to the country's natural gas resource base, which presently stands at 7.5 trillion cubic feet. Just this week, BG Chairman Robert Wilson said his company planned to invest up to $20 billion to extract gas in Tanzania.
On February 22, Royal Dutch Shell announced a $1.6 billion takeover bid for Cove Energy as it seeks to expand its portfolio in East Africa.
Cove's main asset is an 8.5% interest in the Rovuma Offshore Area 1, in Mozambique, where operator Anadarko said recoverable reserves could top 30 trillion cubic feet.
Cove put itself up for sale in January in a secret auction and the February 22 stated that in spite of the Shell offer, the formal sale process continued.
Thailand's PTT, India's ONGC, Gail and Anadarko are rumored to have expressed interest.
Shell's bid throws the spotlight on potential takeovers and a possible resurgence of asset swaps in the East Africa play, with Solo, Aminex and Ophir tipped as potential targets.
And while it may be too early for Shell to crack open the champagne, it's not so for Tullow Oil.
Tullow, the company that first piqued interest in Uganda, finally sealed a $2.9 billion deal on February 20 to bring in France's Total and China's CNOOC as its partners in the Albertine Basin. The deal to farm down 66.67% of the FTSE-100-listed company's licences took 18 months to complete.
The news is also exciting for Uganda as it paves the way for commercial oil production to start in approximately 36 months after the development plan is approved.
Though full-scale gas production is still some years away, it's clear that East Africa is stepping out of the shadows towards a new gas hub.
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