French group Total has completed the acquisition of the 26.5% stake previously held by Anadarko Petroleum group in the Mozambique LNG project for US$3.9 billion, according to a statement released on Monday.
This acquisition follows the French group’s agreement with US group Occidental Petroleum to purchase the assets of the Anadarko Petroleum group in Africa (South Africa, Algeria, Ghana and Mozambique) for US$8.8 billion.
“The Mozambique LNG project is an asset that fits perfectly into our strategy and strengthens our position in liquefied natural gas,” said Patrick Pouyanné, chairman and chief executive officer of Total.
The French group said in the statement that Mozambique LNG is a virtually risk-free project, as almost 90% of expected production has already been sold through long-term contracts with major buyers of liquefied natural gas in Asia and Europe, in addition to the Mozambican component for local consumption.
The Area 1 block of the Rovuma Basin, northern Mozambique, contains over 60 billion cubic feet of natural gas, of which 18 billion cubic feet will be developed with the first two processing units.
The Total group operates that block, with 26.5%, where its partners are ENH Rovuma Área Um, a subsidiary of the Mozambican state-owned ENH, with 15%, Mitsui E&P Mozambique Area1 Ltd. (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%). (Macauhub)