Mozambique: Anadarko to invest $176 million before final investment decision

Login

Register

http://www.clubofmozambique.com/

Mozambique: Anadarko to invest $176 million before final investment decision

1:10 CAT | 27 Feb 2019

File photo: Lusa

U.S. oil giant Anadarko announced it aims to invest around $176 million (€200 million) in a natural gas exploration project in Mozambique in the first half of this year, before it goes ahead with a Final Investment Decision (FID) to build a giant liquefied natural gas(LNG) terminal.

According to the company’s annual report, this amount includes part of Anadarko’s part of the preparation underway on the site for the onshore plant.

The document also states that the deadlines are being met so that the oil company will soon decide if it is to go ahead with the project, and warns investors that an adjustment of previsions of capital investments are anticipated if the project is sanctioned.

Last year, Anadarko signed sale agreements worth 7.5 million TPA (Tonnes per annum) of LNG, followed by another agreement worth 2 million TPA signed recently.

Anadarko is currently completing the financing of the project with funders and guaranteeing governmental approvals necessary to put the company in a position to make a final investment decision in the first half of 2019.

A final investment decision in Area 1 through a public announcement will confirm the total investment in infrastructure already underway for over a year in the Afungi peninsula in the district of Palma, in the northern province of Cabo Delgado.

Attacks by armed groups in the region, which have already killed at least 150 people, have not interrupted the works, which will enable LNG to be processed within four or five years.

The consortium exploring Area 1 is composed of Anadarko (26.5%), Japan’s Mitsui (20%), India’s ONGC (16%), Mozambique’s ENH (15%) and India’s Oil India Limited (4%) and Bharat Petro Resources (10%) as well as Thailand’s PTTEP (8.5%).

Source: Lusa