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Total acquires Anadarko’s shareholding in Mozambique LNG

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Total has released a statement announcing the closing of the acquisition of Anadarko’s 26.5% operated interest in the Mozambique LNG project for a purchase price of US$3.9 billion.

This closing comes after Total signed a binding agreement with Occidental on 3 May 2019 to acquire Anadarko’s assets in Africa (Mozambique, Algeria, Ghana and South Africa), and signed the subsequent purchase and sale agreement on 3 August 2019. According to the statement, this first transaction follows receipt of all requisite approvals by the relevant authorities and partners.

Patrick Pouyanné, Chairman & CEO of Total, said: “Mozambique LNG is one of a kind asset that perfectly fits with our strategy and expands our position in LNG.

“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. Total will of course work on the strong foundations established by the previous operator and its partners, in order to implement the project in the best interest of all those involved, including the government and the people of Mozambique.”

Mozambique LNG is the country’s first onshore LNG development. It includes the development of the Golfinho and Atum fields located within Offshore Area 1, as well as the construction of a two-train liquefaction plant with a capacity of 12.9 million tpy. Area 1 contains over 60 trillion ft3 of gas resources, of which 18 trillion ft3 will be developed with the first two trains. The project’s final investment decision (FID) was announced on 18 June 2019, and it is expected to come into production by 2024.

According to the statement, the Mozambique LNG project is largely de-risked, as nearly 90% of the production has already been sold through long-term contracts with key LNG buyers in both Asia and Europe. In addition to this, the project is expected to have a domestic gas component for in-country consumption to help fuel future economic development.

Closing operations are still continuing in relation to Anadarko’s assets in the other countries (Algeria, Ghana, South Africa).

Read the article online at: https://www.lngindustry.com/liquefaction/30092019/total-acquires-anadarkos-shareholding-in-mozambique-lng/

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