New #lng Milestones For Anadarko #offshore #naturalgas

By 3rd December 2015 Industry News No Comments

Anadarko has signed a Unitization and Unit Operating Agreement (UUOA) with Eni for the development of massive natural gas resources in 2 blocks offshore Mozambique: Offshore Area 1, operated by Anadarko, and Offshore Area 4, operated by Eni.

Massive Natural Gas Resources To Be Developed

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 24 Tcf of natural gas reserves (12 Tcf from each Area) have been developed.

Anadarko Mozambique update; Slide is from Jefferies 5th Annual Global Energy Conference, November 11, 2015

All subsequent development of the Unit will be pursued jointly by the Area 1 and Area 4 concessionaires through a JV operator (50/50 Anadarko and Eni). The UUOA is subject to final approval by the Government of Mozambique, Anadarko said.

Mitch Ingram, Anadarko Executive Vice President, Global LNG, said, “We have already made tremendous progress advancing the natural gas resources in the Golfinho and Atum fields that are fully contained within our block, and with this UUOA, we can also expect to move the Prosperidade and Mamba straddling reservoirs forward more efficiently, while capitalizing on greater economies of scale.”

Natural Gas For Domestic Use In Mozambique

Anadarko also said it reached a Memorandum of Understanding (MOU) with the Mozambique government to provide natural gas from its Mozambique development for domestic use.

Per the terms of the MOU, Offshore Area 1 will provide initial volumes of about 50 MMcf/d per train (100 MMcf/d) for domestic use in Mozambique. The natural gas will be provided at pricing that is fair to all parties and supports local natural gas development. Anadarko says the concessionaires are prepared to sell up to 300 MMcf/d of additional volumes into the domestic market in future years as projects are matured and commercial terms agreed.

“Signing this MOU is an important step,” added Ingram. “We look forward to continuing to work with the Government of Mozambique to finalize the legal and contractual framework that will enable us to deliver natural gas for domestic projects and LNG cargoes for export to premium markets around the world, both of which will benefit Mozambique through a reliable source of cleaner energy and significant revenue generation.”

Offshore Area 1 Specifics:

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

Offshore Area 4 Specifics:

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