Anadarko Finalizes Marine Concessions with Mozambique for Offshore Area 1 project

Anadarko Petroleum has announced that it had finalized two agreements with the Government of Mozambique – together known as the “marine concessions” – which would allow it to design, build and operate the marine facilities for its LNG project in northern Mozambique. This follows the publication of the Mozambican Government Decrees approving those agreements.

According to Anadarko Executive Vice President for Global LNG Mitch Ingram the approval of the decrees is a key milestone on the path to a final investment decision (FID) for its initial two-train LNG project.

“It marks the completion of the core components of the Legal and Contractual Framework with the Government. We will now look ahead with our plans to begin resettlement, which will enable the construction of the LNG plant,” Mitch said.

Going forward Anadarko says it will continue to make good progress with its efforts to secure long-term LNG Sales and Purchase Agreements (SPAs) with premier buyers as well as get the necessary financing for the project.

“We expect to take FID once the SPAs and financing are in place,” Mitch added.

Anadarko is developing Mozambique’s first onshore LNG plant consisting of two initial LNG trains with a total capacity of 12 million tonnes per annum (MTPA) to support the Golfinho/Atum field located entirely within Offshore Area 1.

To date Anadarko has selected of a consortium consisting of CB&I, Chiyoda Corporation and Saipem (CCS JV) for the initial development of the onshore LNG park in Mozambique as well as signed the Unitization and Unit Operating Agreement (UUOA) set out for the development of natural gas reservoirs straddling Areas 4 and 1 in the Rovuma Basin, offshore Mozambique.

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).

Author: OilNews

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