Eni, Anadarko Join Hands on Mozambique Gas Project
Eni and Anadarko have signed unitization and unit operating agreement (UUOA) for development of gas resources overlapping Areas 4 and 1 in the Rovuma Basin, offshore Mozambique.
Area 4 is operated by Eni East Africa while Area 1 is operated by Anadarko Mozambique Area 1 Ltd.
As per the agreement the development of the straddling reservoirs will be carried out initially in a separated but coordinated way until 24 Tcf of natural gas reserves (12 Tcf of natural gas from each Area) will be reached. Future developments will 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 Area 1, the two companies said in separate statement released Thursday.
In addition, Anadarko reached a Memorandum of Understanding (MOU) with the Government of Mozambique to provide natural gas from its Mozambique LNG development for domestic use.
Under the terms of the MOU, Offshore Area 1 will provide initial volumes of approx. 50 million cubic feet of natural gas per day (MMcf/d) per train (100 MMcf/d) for domestic use in Mozambique.
“The natural gas will be provided at pricing that is fair to all parties and supports local natural gas development, and the concessionaires are prepared to sell up to 300 MMcf/d of additional volumes into the domestic market in future years as projects are matured and commercial terms agreed,” Anadarko said.
Eni is the operator of Area 4 with a 50 percent indirect interest owned through Eni East Africa (EEA), which holds 70 percent stake of Area 4. The other concessionaires are Galp Energia, KOGAS and Empresa Nacional de Hidrocarbonetos (ENH) with a 10 percent stake each. CNPC owns a 20 percent indirect interest in Area 4 through Eni East Africa.
Anadarko is the operator in Area 1 with a 26.5 percent stake through Anadarko Mozambique Area 1 (AMA1). The other partners are ENH (15 percent), Mitsui E&P Mozambique Area 1 (20 percent), Beas Rovuma Energy Mozambique (10 percent), BPRL Ventures Mozambique (10 percent), ONGC Videsh (10 percent) and PTTEP Mozambique Area 1 (8.5 percent).