U.S. oil and gas firm Anadarko has signed an agreement to sell LNG from its Mozambique LNG project to Jera and CPC Corporation, Taiwan, ahead of the final investment decision expected next month.
Anadarko, the operator of the Mozambique Area 1, an offshore gas-rich area being developed as part of the project, said on Monday that the sales and purchase agreement called for the delivery of 1.6 million tonnes per annum of LNG over a base term of 17 years.
Mitch Ingram, Anadarko Executive Vice President, International, Deepwater & Exploration said: “This co-purchasing agreement with JERA and CPC brings together two prominent Asian foundation customers and will ensure a reliable supply of cleaner energy to meet the growing demands of both Japan and Taiwan.”
He said the new sales and purchase agreement brought Anadarko’s brings our total long-term agreements related to the project to 11.1 MTPA.
“We are excited to take the next step with the expected announcement of a Final Investment Decision (FID) for the Mozambique LNG project on June 18, as we remain on track to complete the project financing process and secure final approvals,” Ingram said.
Anadarko is developing Mozambique’s first onshore LNG facility consisting of two initial LNG trains with a total nameplate capacity of 12.88 MTPA to support the development of the Golfinho/Atum field located within Offshore Area 1. The company last week said that the FID for the Mozambique project would be made on June 18.
Apart from the Jera, CPC agreement, Anadarko has so far signed several LNG offtake agreements in preparation for the Final Investment Decision for the project. The buyers include CNOOC, Tokyo Gas, Centrica, Shell, Tohoku, Bharat, and EDF.
While currently the operator of the project Anadarko is expected to be replaced by France’s Total. Namely, Occidental Petroleum which is expected to take over Anadarko after Chevron decided not to raise its previously placed takeover bid, has reached an agreement to sell all Anadarko’s Africa assets to Total for $8.8 billion, subject to a successful takeover.
The takeover transaction is expected to close in the second half of 2019, subject to approval by Anadarko shareholders
Anadarko Moçambique Área 1, Lda, a subsidiary of Anadarko Petroleum, operates Offshore Area 1 with a 26.5-percent working interest. Co-venturers include ENH Rovuma Área Um, S.A. (15 percent), Mitsui E&P Mozambique Area1 Ltd. (20 percent), ONGC Videsh (10 percent), Beas Rovuma Energy Mozambique Limited (10 percent), BPRL Ventures Mozambique B.V. (10 percent), and PTTEP Mozambique Area 1 Limited (8.5 percent).