In a US$3.9Bn deal, French energy major Total has acquired Anadarko’s 26.5% operating interest in the Mozambique LNG project from US-based independent energy company Occidental Petroleum
The acquisition follows a binding agreement reached between Total and Occidental signed 3 May to acquire Anadarko’s assets in Africa (Mozambique, Algeria, Ghana and South Africa) and a subsequent purchase and sale agreement on 3 August.
“Mozambique LNG is a one of a kind asset that perfectly fits with our strategy and expands our position in liquefied natural gas,” said Total chairman and chief executive Patrick Pouyanné.
Mozambique LNG is the country’s first onshore LNG development. The project includes developing the Golfinho and Atum fields located within Offshore Area 1 and constructing two trains with a total nameplate capacity of 12.88 mta of LNG. Area 1 contains more than 60Tn ft3 of gas resources, of which 18Tn ft3 will be developed with the first two trains. FID on Mozambique LNG was announced in June 2019, and the project is expected to come into production by 2024.
About 90% of the production of the Mozambique LNG project has been sold through long-term contracts with key LNG buyers in Asia and in Europe. Additionally, the project will provide natural gas for in-country power generation.
Total’s partners in Mozambique LNG are ENH Rovuma Área Um, SA (15%), Mitsui E&P Mozambique Area1 Ltd (20%), ONGC Videsh Ltd (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique BV (10%), and PTTEP Mozambique Area 1 Limited (8.5%).