Anadarko Mozambique LNG Final Investment Decision

Anadarko Petroleum announced yesterday a Final Investment Decision (FID) for the Mozambique LNG project. The FID was made at an event in Maputo, Mozambique, attended by the President of the Republic of Mozambique Filipe Nyusi, the Minister of Mineral Resources Ernesto Max Tonela, and Anadarko's Chairman and CEO Al Walker.

Mozambique LNG will initially consist of two LNG trains with total nameplate capacity of 12.88 million tonnes per annum (MTPA). The project has secured in aggregate 11.1 MTPA of long-term LNG sales with buyers in Asia and in Europe. Earlier this year Occidental Petroleum agreed to buy Anadarko Petroleum. In May Total announced it reached a binding agreement with Occidental to acquire Anadarko’s assets in Africa for 8.8 billion USD. This includes the Anadarko 26.5% participating interest in Mozambique LNG area 1.

"This is an exciting day for Mozambique and for our partnership, bringing us a step closer to making Mozambique's first onshore LNG facility a reality," said Anadarko Chairman and CEO, Al Walker. "The Anadarko-led Area 1 Mozambique LNG project has come a long way from our first discovery to FID for the construction of the initial two-train development project. I want to say a collective 'thank you' to the world-class LNG team we have assembled at Anadarko, our co-venturers, long-term foundation customers, lenders, the people of the Cabo Delgado region, and the Government of Mozambique. As the world increasingly seeks cleaner forms of energy, the Anadarko-led Area 1 Mozambique LNG project is ideally located to meet growing demand, particularly in expanding Asian and European markets. We look forward to safely executing the next phase of this project for the long-term benefit of Mozambique, its people, our partnership, and our customers."

Anadarko provided a list of contractor selections for the Mozambique LNG area 1 below:

Company Provided Items for the Subsea Gathering System:

TechnipFMC – Subsea Trees, Completion Workover Riser & Installation Workover Control System, Subsea Controls System, Subsea Connectors and Production Manifolds

Oceaneering International, Inc. – Subsea Umbilicals and Distribution Hardware

Oceaneering International GMBH – Aftermarket services in Mozambique

Advanced Technology Valve S.p.A. – Pipeline Subsea Ball and Subsea Gate Valves

Cameron Italy, S.R.L. – Subsea Chemical Injection Metering Valves

Engineering, Procurement, Construction and Installation (EPCI) for the Offshore Subsea System:

TechnipFMC and VanOord – for the engineering, procurement, construction and installation (EPCI) of the offshore subsea system

Engineering, Procurement and Construction (EPC) for the LNG Facility and Support Facilities:

A consortium consisting of McDermott, Chiyoda and Saipem (CCS JV) – the Engineering, Procurement and Construction (EPC) contracts for the Mozambique LNG liquefaction facility and support facilities.

Anadarko Petroleum Corporation, operates Offshore Area 1 with a 26.5 percent working interest. Co-venturers include ENH Rovuma Área Um, S.A. (15 percent), Mitsui E&P Mozambique Area1 Ltd. (20 percent), ONGC Videsh Ltd. (10 percent), Beas Rovuma Energy Mozambique Limited (10 percent), BPRL Ventures Mozambique B.V. (10 percent), and PTTEP Mozambique Area 1 Limited (8.5 percent).