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Anadarko reaches Mozambique LNG milestone

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LNG Industry,

Anadarko has released a statement claiming that, with the concessionaires of Offshore Area 4, which is operated by Eni East Africa (EEA), and Offshore Area 1, which is operated by Anadarko Mozambique Area 1 Ltd, it has signed a unitisation and unit operating agreement (UUOA) for the development of the natural gas resources, which straddle both blocks.

The Anadarko Executive Vice President, Global LNG, Mitch Ingram, said: “We appreciate the cooperation of the Government of Mozambique, Eni and our co-venturers in Offshore Area 1 for their collaborative efforts in achieving this UUOA, which is fair, equitable and consistent with best industry practices.

“We have already made tremendous progress advancing the natural gas resources in the Golfinho and Atum fields that are fully contained within our block, and with this UUOA, we can also expect to move the Prosperidade and Mamba straddling reservoirs forward more efficiently, while capitalising on greater economies of scale."

As part of the UUOA and the previously announced Decree Law, the Mamba and Prosperidade straddling natural gas reservoirs will be developed in a separate yet coordinated way by the operators until the development of 24 trillion ft3 of natural gas reserves has been completed.

Area 1 and Area 4 will pursue all subsequent development of the unit through a joint venture (JV) operator (owned by Anadarko and Eni). The UUOA remains subject to the Government of Mozambique’s final approval.

Additionally, Anadarko announced that it signed a Memorandum of Understanding (MoU) with Government of Mozambique, regarding the supply of natural gas from the Mozambique LNG development for domestic usage.

As part of the MoU terms, Offshore Area 1 will supply the initial volumes of approximately 50 million ft3/d of natural gas, which will be used domestically in Mozambique. The concessionaires are willing to sell additional volumes of up to 300 million ft3/d of natural gas to the domestic gas market in the future.

Ingram added: “Signing this MOU is an important step.

“We look forward to continuing to work with the Government of Mozambique to finalise the legal and contractual framework that will enable us to deliver natural gas for domestic projects and LNG cargoes for export to premium markets around the world, both of which will benefit Mozambique through a reliable source of cleaner energy and significant revenue generation."

Edited from press release by David Rowlands

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