U.S. Company Anadarko partners with China’s CNOOC for Mozambique gas

Google+ Pinterest LinkedIn Tumblr +

Anadarko, an American petroleum and natural gas exploration and production company, said it has signed a long term agreement with the trading division of China’s state-owned offshore oil and gas producer CNOOC Ltd to supply liquefied natural gas (LNG) from Mozambique.

The deal will bring Anadarko one step closer to making a final investment decision for its East African LNG project, with the decision expected in the first half of this year.

Anadarko noted that CNOOC’s gas and power Singapore Trading and Marketing unit had signed a sales and purchase agreement with Mozambique LNG1 Company, the jointly-owned sales entity of the Mozambique Area 1 co-venturers. The sales and purchase agreement is for 1.5 million tonnes per annum (mtpa) for a period of 13 years.

Executive Vice President of Anadarko’s International, Deepwater and Exploration division, Mitch Ingram said “this  deal gives China’s largest LNG importer access to Mozambique LNG’s world-class gas resources, which are strategically located off the East Coast of Africa, and will provide China with a clean source of energy for years to come”.

Ingram said the agreement demonstrates the progress the company is making towards its goal of taking a final investment decision in the first half of this year. He added that the company is expected to announce further sales and purchase agreements in the near future.

Initially consisting of two LNG trains with total capacity of 12.88 mtpa to support the development of the Golfinho/Atum fields located entirely within offshore Area 1, the Anadarko-operated Mozambique LNG project will be Mozambique’s first onshore LNG development.

Anadarko Moçambique Área 1, Lda, which is a wholly owned subsidiary of Anadarko Petroleum Corporation, operates Offshore Area 1 with a 26.5 percent interest.

Other stakeholders include ENH Robuma Area Um, Mitsui E&P Mozambique Area1, ONGC Videsh, Beas Rovuma Energy Mozambique Ltd, BPRL Ventures Mozambique, and PTTEP Mozambique Area 1 Ltd.

Share.

Leave A Reply