Thai group signs agreement to buy natural gas extracted in Mozambique

16 December 2013

Thai group PTT Exploration and Production has signed a preliminary agreement with US group Anadarko Petroleum to buy 2.6 million tons of liquid natural gas (LNG) extracted in Mozambique, the chairman of the group said.

Anadarko Petroleum is the operator of the Area 1 block of the Rovuma basin in northern Mozambique, with a 36.5 percent stake, in which the PTT group has a stake of 8.5 percent, Mozambican state company Empresa Nacional de Hidrocarbonetos (ENH) has 15 percent, and the remaining 40 percent is owned by Japan’s Mitsui (20 percent) and Indian companies BPRL Ventures and Videocon Industries.

In the meantime a number of deals are underway for the sale of stakes in this block, which have yet to be completed as they have yet to be approved, particularly by the tax authorities, in Mozambique.

Tevin Vongvanich, the chief executive of PTT Exploration and Production, said that the group was in talks with members of the Mozambican government about legislation covering oil and gas prospecting and with owners of stakes in blocks near Area 1 with a view to possible cooperation. (macauhub)