Anadarko Acknowledges Maputo's Approval

Anadarko, operator of Mozambique LNG (MzLNG), and other partners publicly announced March 5 for the first time that the Mozambican government has green-lighted the venture's plan to develop the Golfinho-Atum natural gas field in offshore Area 1.

The government in Maputo issued the approval a month ago on February 7, but a day later Anadarko was still limiting its remarks, saying merely that it was "very encouraged to hear the positive news coming out of Mozambique that the plan of development has been approved" and looked "forward to receiving official confirmation from the government in due course, at which time we will issue a formal press release." 

In its March 5 statement however, Mitch Ingram, Anadarko's executive vice president for international & deepwater operations and project management, remarked: "We appreciate the support of the government of Mozambique and are very pleased to achieve this critical milestone providing a further indication of the tremendous progress we continue to make on the project, which will position Mozambique as a strategic global LNG supplier."

"The approval of the development plan continues advancement toward a final investment decision as it builds upon other recent achievements, including the announcement of our long-term SPA (Sale and Purchase Agreement) with EDF, commencement of resettlement, and our ongoing work to secure project financing," he added. MzLNG has also lined up provisional LNG supply deals with Thailand's PTT and Japan's Tohuku Electric, but both need to be firmed up.

Anadarko said that the Mozambique LNG project will be the country's first onshore LNG development, initially consisting of two LNG trains with total nameplate capacity of 12.88mn mt/yr to support the development of the Golfinho/Atum fields located entirely within Area 1 in the Rovuma offshore basin. Its project "paves the way for significant future expansion of up to 50mn mt/yr from offshore Area 1".

Ingram had told analysts February 7 that, whilst Golfinho/Atum offshore gas reserves are enough to provide for the initial 12.8mn mt/yr LNG project, the reserves in the Area 1 Prosperidade field provide upside for a future expansion.

Project will also supply gas to local market

Golfinho/Atum fields will also supply initial volumes of some 100mn ft³/d (50mn ft³/d per train) for domestic use in Mozambique, the US independent added.

Anadarko has a 26.5% interest in MzLNG, alongside Mozambican state ENH 15%, Japan's Mitsui 20%,  Indian trio ONGC Videsh 10%, Bharat PetroResources 10% and Oil India 4%, plus Thai state upstream firm PTTEP 8.5%.

Oil India and ONGC Videsh also made announcements March 5 similar to that of Anadarko, with Oil India noting that the approval is "the culmination of several years of progress on technical and commercial aspects of the development."

So too did PTTEP whose president for E&P, Phongsthorn Thavisin, remarked March 5: “The Mozambique Rovuma Offshore Area 1 project is one of important projects under our strategic investment plan."

Anadarko's March 5 did not disclose the initial estimated development cost of the two-train MzLNG venture, but some reports have put this at $15bn which is thought to include upstream costs.