The Institute of National Petroleum of Mozambique (INP) expects to sign new oil and gas prospecting contracts by early 2017 with the companies awarded rights to test for hydrocarbons across the country, an official said on Dec. 1.

An INP official told a gas and oil summit in Maputo, Mozambique, that the contracts would be finalized within two to four months with the companies that have been awarded the blocks.

"We can say that there is progress as the meetings with the winning bidders have already begun. We expect it to last two to four months," the official said.

After the signing of these contracts, INP indicated that the winning bidders would start looking for oil and gas immediately.

Mozambique has about 85 trillion cubic feet of gas reserves, enough to supply Germany, Britain, France and Italy for nearly two decades. But analysts said it will likely take at least five years after final investment decisions before gas production begins.

Mozambique officials expect more than $30 billion will be invested initially in the natural gas sector.

INP has awarded four blocks offshore Mozambique to ExxonMobil Corp. (NYSE: XOM), Rosneft and Eni in a fifth round of competitive bidding for E&P concession contracts.

In 2014 Mozambique launched 15 new offshore and onshore areas for gas and oil E&P in its northern, central and southern regions.

The blocks include three new areas of the northern Rovuma Basin, where Anadarko Petroleum Corp. (NYSE: APC) and Eni are already developing multibillion-dollar LNG export projects.