U.S. oil firm Anadarko Petroleum expects to make the final investment decision for its Mozambique LNG project next month.
The company, in takeover talks with Oxy after Chevron decided to pull out on Thursday, has said that the FID for the Mozambique project, designed to develop offshore gas deposits, would be made on June 18.
Anadarko CEO Al Walker said on Wednesday: “With commitments for financing in place, off-take secured, and all other issues under negotiation successfully addressed, 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.”
“Mozambique LNG is among the most significant projects that our company or any other has undertaken, given the scale of the project, size of the resource, and the potential long-term transformational benefits it represents for Mozambique.”
“We are grateful for the continued support of the people and government of Mozambique, our co-venturers, and the thousands of men and women working in the Cabo Delgado region to develop this exciting project. We look forward to celebrating the official sanctioning of Mozambique LNG on June 18.”
Mozambique President Felipe Jacinto Nyusi said: “We expect June 18 will become a historic day in Mozambique as we announce that one of the most important and transformational projects in our country’s history is ready to advance to the next stage. We recognize Anadarko’s continued commitment to moving this project forward to becoming a reality.”
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 Mozambique’s Offshore Area 1. The Golfinho/Atum Project will supply initial volumes of approximately 100 million cubic feet of natural gas per day (MMcf/d) (50 MMcf/d per train) for domestic use in Mozambique.
In the last week of April, Anadarko said it was in talks to finalize further gas sales deals the project, having by that time announced Sale and Purchase Agreements (SPAs) totaling more than 9.5 million tonnes of LNG per annum year. Anadarko at the time said the deals being discussed, if executed, would bring the total volume to more than 11 MTPA.
The company has recently 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.
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).
Worth noting, Anadarko, while the operator of the project, might soon be replaced by France’s Total. Namely, Occidental Petroleum, which is in talks to buy Anadarko, has already reached an agreement to sell all Anadarko’s Africa assets to Total for $8.8 billion, subject to a successful takeover.