Total SA has closed on the deal to acquire Anadarko Petroleum Corp.’s 26.5% operated interest in the Mozambique LNG project for $3.9 billion.
Closing comes after Total reached a binding agreement with Occidental Petroleum Corp. on May 3 to acquire Anadarko’s assets in Africa (Mozambique, Algeria, Ghana, and South Africa) and signed the subsequent purchase and sale agreement on Aug. 3 (OGJ Online, May 6, 2019). This first transaction follows receipt of all requisite approvals by the relevant authorities and partners.
Mozambique LNG is the country’s first onshore LNG development. The project includes the development of Golfinho and Atum fields within Offshore Area 1 and the construction of a two-train liquefaction plant with a capacity of 12.9 million tonnes/year. Area 1 contains more than 60 tcf of gas resources, of which 18 tcf will be developed with the first two trains. Final investment decision on Mozambique LNG was made on June 18 and the project is expected to come into production by 2024 (OGJ Online, June 19, 2019).
Close to 90% of the production is sold through long-term contracts with key LNG buyers in Asia and in Europe. 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 SA 15%, Mitsui E&P Mozambique Area1 Ltd. 20%, ONGC Videsh Ltd. 10%, Beas Rovuma Energy Mozambique Ltd. 10%, BPRL Ventures Mozambique BV 10%, and PTTEP Mozambique Area 1 Ltd. 8.5%.
Closing operations are still ongoing in relation to Anadarko’s assets in the other countries (Algeria, Ghana, and South Africa).
