Anadarko Petroleum and ENI in talks to jointly explore natural gas in Mozambique

13 September 2012

US group Anadarko Petroleum Corp is in negotiations with Italian group ENI to build a natural gas processing unit in Mozambique in order to jointly develop reserves discovered so far, the company’s vice president, Scott Moore told Dow Jones Newswires.

The two groups, which are the operators of two separate consortiums prospecting for oil and gas in Mozambique, have separately found huge natural gas deposits, with Anadarko Petroleum announcing it had discovered natural gas reserves estimated to total 50 trillion cubic feet and ENI finding 70 trillion cubic feet of gas.

On the sidelines of a conference held in Singapore, Moore said that construction of a natural gas processing unit, including the gas pipelines needed to transport the gas, had an estimated cost of US$15 billion.

A spokesman for the Italian group confirmed that talks were underway with Anadarko, but declined to comment on the possibility of the two companies working together in the natural gas sector in Mozambique.

The US group, which is the operator of Area 1 in the Rovuma basin in northern Mozambique, in which it has a stake of 36.5 percent, and its partners, Japan’s Mitsui & Co., with 20 percent, India’s Bharat Petroleum Corporation Limited and Videocon, with 10 percent each, Mozambique’s ENH (15 percent) and Cove Energy (8.5 percent), which meanwhile has been acquired by Thai group PTT. (macauhub)