Anadarko, Eni agreement advances Mozambique LNG project

Anadarko Petroleum Corp. signed a heads of agreement (HOA) with Eni SPA aimed at coordinating the two companies’ activities in connection with the Mozambique liquefied natural gas project.

The HOA establishes principles for the coordinated development of the common natural gas reservoirs spanning Mozambique's Offshore Area 1 (operated by Anadarko) and Offshore Area 4 (operated by Eni), the Houston independent producer said.

The project design allows the two operators to conduct separate, yet coordinated, offshore development while jointly constructing onshore liquefaction facilities in northern Mozambique’s Cabo Delgado province, Anadarko indicated.

"We expect the HOA to lead to a unitization agreement to further facilitate the efficient development of the common resources, as well as the independent reservoirs on both blocks, enabling enhanced economies of scale through shared infrastructure and facilities,” Anadarko Chief Executive Al Walker said.

The two producers and Mozambique’s government expect the project’s first LNG cargoes will ship in 2018, he added.

Multiple front-end engineering and design contracts for the project also have been signed, Anadarko said.

Contact Nick Snow at nicks@pennwell.com

 

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