Anadarko, Mozambique Government Agree On Legal And Contractual Framework In Area 1

Offshore Area 1 operator Anadarko and its Area 1 co-venturers have announced that they have established the foundational legal and contractual framework with the Mozambique government allowing them to commence onshore site preparation activities with resettlement having started.

Further Anadarko has agreed to key terms including volume and price for approximately 5 MTPA of long term offtake including a Heads of Agreement was reached with Tohoku Electric Power Company, Inc., one of Japan’s most important LNG buyers while negotiations is still ongoing for the remaining contracts worth 3.4 MTPA.

According to Anadarko based on the recent project advances, finalization of the contract with the selected onshore contractor is underway, and all offshore tender packages were issued to prepare for the selection of the offshore contractor and vendors.

In 2018 Anadarko has said it expects to invest approximately $150 million primarily to fund its portion of the costs associated with preparing the site of the future LNG park as the company advances the Mozambique LNG project.

Anadarko has Already has received the greenlight to proceed with design, construction and operations of marine facilities for its LNG project in northern Mozambique after finalizing two agreements with the Government and publication of the Mozambican Government Decrees approving those agreements.

Together with its partners Anadarko have discovered more than 75 trillion cubic feet (Tcf) of recoverable natural gas resources in Offshore Area 1 and are working to develop one of the world’s largest liquefied natural gas (LNG) projects with the potential to elevate Mozambique to the world’s third-largest exporter of natural gas.

Anadarko operates Offshore Area 1 with a 26.5-percent working interest. Co-venturers include Empresa Nacional de Hidrocarbonetos E.P. (ENH) (15 percent), Mitsui E&P Mozambique Area1 Ltd. (20 percent), ONGC Videsh Ltd. (16 percent), Bharat PetroResources Ltd. (10 percent), PTT Exploration & Production Plc (8.5 percent), and Oil India Ltd. (4 percent).