## Anadarko Sanctions Mozambique LNG Project

#### Topics

Anadarko Petroleum has announced a final investment decision (FID) its Mozambique LNG project. At $20 billion, the sanction is the largest ever for a sub-Saharan oil and gas project. Mozambique’s first onshore LNG development will initially consist of two LNG trains with a total capacity of 12.88 mtpa to support the development of the Golfinho/Atum fields located in Offshore Area 1, approximately 25 mi offshore northern Mozambique. “As the world increasingly seeks cleaner forms of energy, the Anadarko-led Area 1 Mozambique project is ideally located to meet growing demand, particularly in expanding Asian and European markets,” Anadarko chairman and CEO Al Walker said in a statement. The project has secured an aggregate 11.1 mtpa of long-term LNG sales. Wood Mackenzie LNG Consulting head Frank Harris said that flexible commercial arrangements, including a co-purchase agreement with Tokyo Gas and Centrica, have been instrumental in securing a roster of customers in a crowded LNG market. Wood Mackenzie also projects that state revenue from Mozambique LNG will reach$3 billion/yr by the early 2030s. Jon Lawrence, an analyst with Wood Mackenzie’s sub-Saharan Africa upstream team, said that the Anadarko project and the ExxonMobil-led Rovuma LNG development are projected to be the second- and third-most valuable oil and gas sanctions this year, after Arctic LNG-2 in Russia.

The government has designated the project as the first development mover, meaning that the Anadarko-led joint venture will lead construction of shared aspects of the two onshore LNG projects.

Anadarko is set to be taken over by Occidental Petroleum later this year, following a $57 billion acquisition deal in April. Occidental recently agreed to sell Anadarko’s sub-Saharan Africa upstream assets—including the company’s Mozambican holdings—to Total in a$8.8 billion deal. That transaction, which is contingent upon Occidental completing its acquisition of Anadarko, is expected to close in 2020.

## STAY CONNECTED

Don't miss out on the latest technology delivered to your email every two weeks.  Sign up for the OGF newsletter.  If you are not logged in, you will receive a confirmation email that you will need to click on to confirm you want to receive the newsletter.

Topics

People

Papers

Archive

Contact

SPE

JPT

OGF

Journals

HSE Now