Minimal Funding For Anadarko’s Mozambique LNG project in 2016

Mozambique offshore Area 1 operator Anadarko has said it will allocate just minimal expenditure even as it works towards a final investment decision for its LNG project in 2016 despite huge expectations having already selected a consortium consisting of CB&I, Chiyoda Corporation and Saipem (CCS JV) for the initial development of the onshore LNG park in Mozambique..

Anadako says it is works three parallel paths towards the FID including securing the necessary legal and contractual framework, progressing more than 8 million tonnes per annum of off-take toward long-term sales contracts and advancing project financing.

To date Anadarko alongside offshore Area 4 operator Eni have signed the Unitization and Unit Operating Agreement (UUOA) a unitization set out for the development of natural gas reservoirs straddling Areas 4 and 1 in the Rovuma Basin, offshore Mozambique.

Under the terms of the UUOA and previously announced Decree Law, the Prosperidade and Mamba straddling natural gas reservoirs, which comprise the Unit, will be developed in a separate but coordinated manner by the two operators until 24 trillion cubic feet (Tcf) of natural gas reserves (12 Tcf from each Area) have been developed.

Future developments will also be jointly pursued by Area 4 and Area 1 concessionaires through a joint operator, as the result of an equal joint venture between Eni East Africa and Anadarko Mozambique.

Last quarter the company spent $21 million in Mozambique out of a total $247 million spent on its capital investments.

Anadarko made its first discovery in the Offshore Area 1 of the deepwater Rovuma Basin in 2010, launching one of the most important natural gas discoveries in the last 20 years. Together with its partners Anadarko have discovered more than 75 trillion cubic feet (Tcf) of recoverable natural gas resources in Offshore Area 1 and are working to develop one of the world’s largest liquefied natural gas (LNG) projects with the potential to elevate Mozambique to the world’s third-largest exporter of natural gas.

Anadarko is the operator of block 1 with 26.5% stake while other partners include Mitsui with 20% stake, ENH (15%) and PTTEP (8.5%).