Oil major Total has announced the closing of the acquisition of Anadarko’s 26.5 per cent operated interest in the Mozambique LNG project for a purchase price of US$3.9bn
This closing comes after Total reached a binding agreement with Occidental on 3 May, to acquire Anadarko’s assets in Africa (Mozambique, Algeria, Ghana and South Africa) and signed the subsequent purchase and sale agreement on 3 August.
This first transaction follows receipt of all requisite approvals by the relevant authorities and partners.
Patrick Pouyanné, chairman and CEO of Total, said, “Mozambique LNG is one of a kind asset that perfectly fits with our strategy and expands our position in liquefied natural gas. As the new operator, we are fully committed to the Mozambique LNG project and we will bring the best of our human, technical, marketing and financial capacities to further strengthen its execution.”
Mozambique LNG is the country’s first onshore LNG development. The project includes the development of the Golfinho and Atum fields located within Offshore Area 1 and the construction of a two-trains liquefaction plant with a capacity of 12.9 million tonnes per year. Area 1 contains more than 60 tcf of gas resources, of which 18 tcf will be developed with the first two trains. The final investment decision (FID) on Mozambique LNG was announced on June 18, 2019, and the project is expected to come into production by 2024.
The Mozambique LNG project is largely derisked since almost 90 per cent of the production is already sold through long-term contracts with major LNG buyers in Asia and in Europe. In addition, 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 per cent participating interest alongside ENH Rovuma Área Um, S.A. (15 per cent), Mitsui E&P Mozambique Area1 Ltd. (20 per cnet), ONGC Videsh Ltd. (10 per cent), Beas Rovuma Energy Mozambique Limited (10 per cent), BPRL Ventures Mozambique B.V. (10 per cent), and PTTEP Mozambique Area 1 Limited (8.5 per cent).