Simplifying Energy

Total closes Anadarko’s Mozambique LNG acquisition for $3.9 bln

 

 

Total said it closed the acquisition of Anadarko’s 26.5 per cent operated interest in the Mozambique LNG project for US$3.9 billion.

This follows Total reached a binding agreement with Occidental in May this year to acquire Anadarko’s assets in Africa (Mozambique, Algeria, Ghana and South Africa) and signed the subsequent Purchase and Sale Agreement in August.

“Mozambique LNG is one of a kind asset that perfectly fits with our strategy and expands our position in liquefied natural gas,” said Patrick Pouyanné, chairman and CEO of Total.

“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.”

 

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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-train liquefaction plant with a capacity of 12.9 million tonnes per year (Mt/y).

The 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, Total said.

The Mozambique LNG project is largely de risked since almost 90 per cent of the production is already sold through long-term contracts with key LNG buyers in Asia and in Europe. Additionally, 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%), Mitsui E&P Mozambique Area1 Ltd. (20%), ONGC Videsh Ltd. (10%),

Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%).

The French major said the closing operations are still ongoing in relation to Anadarko’s assets in the other countries comprising Algeria, Ghana and South Africa.

Total estimates itself as the second-largest private global LNG player, with an overall portfolio of around 40 Mt/y by 2020 and a worldwide market share of 10%. With 22 Mt of LNG sold in 2018, the group has solid and diversified positions across the LNG value chain. Through its stakes in liquefaction plants located in Qatar, Nigeria, Russia, Norway, Oman, Egypt, the United Arab Emirates, the United States, Australia or Angola, the Group sells LNG in all markets.

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Updated: October 1, 2019 — 8:31 PM
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