Total closes acquisition of Anadarko’s share in Mozambique LNG
Published by Tom Mostyn,
Total announces the closing of the acquisition of Anadarko’s 26.5% operated interest in the Mozambique LNG project for a purchase price of US$3.9 billion.
This closing comes after Total reached a binding agreement with Occidental on 3 May 2019, to acquire Anadarko’s assets in Africa (Mozambique, Algeria, Ghana and South Africa) and signed the subsequent purchase and sale agreement on 3 August 2019. This first transaction follows receipt of all requisite approvals by the relevant authorities and partners.
“Mozambique LNG is one of a kind asset that perfectly fits with our strategy and expands our position in LNG”, said Patrick Pouyanné, Chairman & CEO of Total. “As the new operator, we are fully committed to the Mozambique LNG project and we will bring the best of our human, technical, marketing and financial capacities to further strengthen its execution. Total will of course work on the strong foundations established by the previous operator and its partners, in order to implement the project in the best interest of all those involved, including the government and the people of Mozambique.”
Mozambique LNG is the country’s first onshore LNG development. The project includes the development of the Golfinho and Atum fields located within Offshore Area 1 and the construction of a two-trains liquefaction plant with a capacity of 12.9 million tpy. The Area 1 contains more than 60 trillion ft3 of gas resources, of which 18 trillion ft3will be developed with the first two trains. The final investment decision (FID) on Mozambique LNG was announced on 18 June 2019, and the project is expected to come into production by 2024.
The Mozambique LNG project is largely de-risked since almost 90% of the production is already sold through long-term contracts with key LNG buyers in Asia and in Europe. Additionally, the project is expected to have a domestic gas component for in-country consumption to help fuel future economic development.
Total operates Mozambique LNG with a 26.5% participating interest alongside ENH Rovuma Área Um, S.A. (15%), Mitsui E&P Mozambique Area1 Ltd. (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%).
Closing operations are still ongoing in relation to Anadarko’s assets in other countries (Algeria, Ghana, South Africa).
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/30092019/total-closes-acquisition-of-anadarkos-share-in-mozambique-lng/
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