Anadarko Petroleum to decide on investment in Mozambique by early 2016

7 May 2015

Anadarko Petroleum will make a final decision on investment in Mozambique by the end of this year or early next year, said the group’s chief executive speaking to Reuters news agency, taking the opportunity to deny news the group planned to sell the asset.

The group controls a 26.5 percent stake in the Area 1 block of the Rovuma basin in northern Mozambique on the border with Tanzania, which has as partners Mitsui EP Mozambique Area 1 Limited (20 percent), BPRL Ventures Mozambique BV (10 percent), Videocon Mozambique Rovuma Area 1 Limited (10 percent), PTT Exploration and Production Plc (8.5 percent) and state-owned ENH (15%) during the exploration phase.

The news about a possible sale mentioned oil companies Exxon Mobil and Qatar Petroleum as potential buyers but Al Walker said the group was working to make a final decision on the investment to be made in that block, which contains natural gas reserves estimated at 75 trillion cubic feet.

Al Walker gave assurances that the group was trying to secure natural gas supply contracts with customers, most likely in Asia, and added that the final investment decision should be taken at the end of this year or early 2016.

Natural gas reserves discovered so far in the Rovuma basin point to the existence of more than 200 trillion cubic feet, which may put Mozambique in the top five largest natural gas exporters in the world on par with Russia, Qatar and Australia. (macauhub/MZ)