Anadarko achieves new Mozambique milestones

Anadarko Petroleum and Eni, operators of Offshore Areas 1 and 2 in Mozambique, have signed a joint unitisation and unit operating agreement for the development of the massive natural gas resources that straddle the two blocks. Under the terms of the agreement and previously announced Decree Law, the Prosperidade and Mamba straddling natural gas reservoirs, which comprise the unit, will be developed in a separate but coordinated manner by the two operators until 24tn cf of natural gas reserves (12tn cf from each area) have been developed. All subsequent development of the unit will be pursued jointly by the Area 1 and Area 4 concessionaires through a joint-venture operator (50:50 Anadarko and Eni). The agreement is subject to final approval by the government of Mozambique.

Anadarko has also reached a memorandum of understanding (MoU) with the government of Mozambique to provide natural gas from its Mozambique LNG development for domestic use. Under the terms of the MoU, Offshore Area 1 will provide initial volumes of approximately 50mn cf/d of natural gas per train (100mn cf/d) for domestic use in Mozambique. According to Anadarko, the gas will ‘be provided at pricing that is fair to all parties and supports local natural gas development’. The concessionaires are also reportedly ‘prepared to sell up to 300mn cf/d of additional volumes into the domestic market in future years as projects are matured and commercial terms agreed’.

Anadarko is operator of the Offshore Area 1 block, holding a 26.5% working interest. Co-venturers include the National Oil Company Empresa Nacional de Hidrocarbonetos (ENH 15%), Mitsui E&P Mozambique Area 1 (20%), Beas Rovuma Energy Mozambique (10%), BPRL Ventures Mozambique (10%), ONGC Videsh (10%), and PTTEP Mozambique Area 1 (8.5%).

Eni operates Area 4 with a 50% indirect interest owned through Eni East Africa (EEA), which holds 70% of Area 4. The other partners are Galp Rovuma (10%), KOGAS Mozambique (10%) and ENH (10%). CNOOC owns a 20% indirect participation in Area 4 through Eni East Africa.