Anadarko Selects Contractor For Initial Onshore Mozambique LNG Development

Anadarko Petroleum Corporation on behalf of the co-venturers in Mozambique’s Offshore Area 1, and after a competitive FEED (front-end engineering and design) process has announced the selection of a consortium consisting of CB&I, Chiyoda Corporation and Saipem (CCS JV) for the initial development of the onshore LNG park in Mozambique.

According to Chairman and CEO Al Walker the selection of CCS JV for the development of the onshore Mozambique LNG park is a significant step toward reaching FID (Final Investment Decision) and demonstrates the partners continued commitment to advancing this important project toward first cargoes.

“I am incredibly proud of our co-venture for all of the accomplishments achieved to date, including securing more than 8 million tonnes per annum (MMTPA) in non-binding long-term off-take agreements, which are now progressing toward binding SPAs (Sales and Purchase Agreements), obtaining letters of intent from lenders for project financing at a very material level, and working with the newly elected Government to keep the project moving forward,” says Al Walker.

The scope of the work for the onshore LNG park includes two LNG trains, each with capacity of 6 MMTPA, which is an increase of 1 MMTPA per train over the original plan, while maintaining an estimated cost that is consistent with the co-venturers’ original projections.

The scope also includes two LNG storage tanks, each with capacity of 180,000 cubic meters, condensate storage, multi-berth marine jetty and associated utilities and infrastructure. The selection of CCS JV is subject to negotiation and entry into a definitive agreement prior to taking FID.

CCS JV will be expected to submit a Plan of Development of the Offshore Area in the coming months for the Government’s consideration

Anadarko operates the 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).