Total has completed its acquisition of Anadarko’s 26.5percent operated interest in the Mozambique LNG project for $3.9 billion.
It follows a binding agreement that Total signed in May with Occidental to acquire all Anderson’s interest in Africa (Mozambique, Algeria, Ghana, and South Africa) and subsequent approvals by the authorities and partners.
Patrick Pouyanné, chairman and CEO of Total, said: “Mozambique LNG…expands our position in liquefied natural gas… 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.”
This is Mozambique’s first onshore LNG development, comprising a two-train liquefaction plant with a capacity of 12.9 MM metric tons/yr (14.2 MM tons/yr) supplied by 18 tcf of gas from the deepwater Golfinho and Atum fields in Area 1 in the offshore Rovuma basin.
In total, Area 1 contains more than 60 tcf of discovered gas resources. Total expects this first project to start production by 2024.
Almost 90% of the production from the first-phase development has already been sold through long-term contracts with LNG buyers in Asia and Europe.
In addition, the project will likely provide gas for in-country consumption.
Close-out operations continue regarding Anadarko’s other interests in Ghana, South Africa, and Algeria.