US oil group Anadarko Petroleum invests US$2.2 billion in Mozambique

18 February 2013

US oil group Anadarko Petroleum has so far invested US$2.2 billion in Mozambique in prospecting for oil and natural gas in Area 1 of the Rovuma basin, in the north of the country, according to a source from the group.

Cited in “Mais Valia” the information bulletin of the Mozambique Tributary Authority the source said that the amount spent so far on prospecting significantly exceeded the company’s initial commitment, which was to invest US$465 million.

The investment so far has had positive results as, the source said, the amount of gas in the block is estimated at over 50 trillion cubic feet, which means there are enough resources to ensure construction of a gas processing unit.

The group was authorised in 2006 to prospect for hydrocarbons under the terms of a license granted by the Mining Resources Ministry. Prospecting is at an advanced stage following 19 test drills.

In the next two years, the group plans to build a natural gas liquefaction unit and in the medium term, within around six years, “we expect the first ship to export natural gas to leave the Rovuma basin,” the source said according to Mozambican news agency AIM.

The project to build the natural gas processing unit is at the design stage, which also includes studies for economic, financial and technological feasibility.

The Mozambican oil block in question is operated by Anadarko Petroleum, which has a stake of 36.5 percent, and the remaining partners are Japan’s Mitsui & Co., with 20 percent, India’s Bharat Petroleum Corporation Limited and Videocon, with 10 percent each, Mozambique’s ENH has 15 percent and Thailand’s PTT, which owns 8.5 percent.

Discoveries made thus far show the existence of over 100 trillion cubic feet of natural gas in the Rovuma basin, which means that Mozambique could become one of the world’s largest natural gas producers. (macauhub)