Anadarko sees LNG heft with third Mozambique find

Anadarko Petroleum Corp., having made a third large natural gas discovery in the Rovuma basin off Mozambique this year, said the three finds already exceed the resource size threshold necessary to support an LNG project.

By OGJ editors
HOUSTON, Nov. 29
-- Anadarko Petroleum Corp., having made a third large natural gas discovery in the Rovuma basin off Mozambique this year, said the three finds already exceed the resource size threshold necessary to support an LNG project.

The third discovery, Lagosta, is in 2.6 million acre Offshore Area 1 about 16 miles south of the Barquentine discovery and 14 miles southeast of the Windjammer discovery (see map, OGJ, May 17, 2010, p. 35).

Lagosta cut more than 550 net ft of gas pay in multiple, high-quality sands of Oligocene and Eocene age, Anadarko said. The company didn’t give the threshold recovery estimate.

Bob Daniels, Anadarko senior vice-president, worldwide exploration, said, “The Lagosta discovery continues to validate our geophysical models, and we expect to keep the Belford Dolphin drillship in the basin for the foreseeable future to continue a very active exploration and appraisal program, including at least one planned drillstem test in 2011.”

Daniels said, “We have assigned an integrated project team to begin advancing commercialization options. Given the global LNG trade and its indexing to the global crude market, this resource can provide tremendous economic value for the people of Mozambique, the government and the partnership.”

Lagosta has been drilled to 13,850 ft in 5,080 ft of water. The partnership plans to drill to 15,900 ft to evaluate a deeper zone. Next the rig will move 17.5 miles to the southwest to drill the Tubarao exploratory well on the block.

Anadarko is operator of Offshore Area 1 with 36.5% working interest. Partners are Mitsui E&P Mozambique Area 1 Ltd. 20%, BPRL Ventures Mozambique BV 10%, Videocon Mozambique Rovuma 1 Ltd. 10%, and Cove Energy Mozambique Rovuma Offshore Ltd. 8.5%. Mozambique’s state Empresa Nacional de Hidrocarbonetos ep’s 15% interest is carried through the exploration phase.

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