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French oil major, Total, announced on Monday that it had completed the $3.9 million purchase of Anadarko Petroleum’s 26.5 percent operating interest on the Mozambique LNG project.
The project includes the Goldfinho and Atum fields in Offshore Area 1 and the construction of a two-train liquefaction plant with an anticipated capacity of 12.9 million tons per year.
Offshore Area 1 is said to have an estimated 60 trillion cubic feet (tcf) of gas resources, with 18 trillion tcf to be developed in the first two years.
In an official statement, Total said the project is expected to come into production by 2024 and that close to 90 percent of the project’s production has been sold through long-term contacts with key LNG buyers in Asia and Europe.
“Mozambique LNG is [a] one of a kind asset that perfectly fits with our strategy and expands our position in liquefied natural gas,” said the major’s Chairman and CEO, Patrick Pouyanné.
He added that, “As the new operator, we are fully committed to the Mozambique LNG project and we will bring the best of our human, technical, marketing and financial capacities to further strengthen its execution. Total will of course work on the strong foundations established by the previous operator and its partners, in order to implement the project in the best interest of all those involved, including the government and the people of Mozambique.”
This deal follows Total and Occidental Petroleum’s definitive purchase and sale agreements, which will also see the French major acquire Anadarko Petroleum’s assets in South Africa, Algeria and Ghana.
Last week, during a company investment event in New York, Total said it expects the Algeria and Ghana assets to close by early 2020.
With a 26.5 percent interest, Total is now the main operator of the Mozambique LNG project.
Other partners include, ENH Rovuma Área Um, S.A. (15 percent), Mitsui E&P Mozambique Area1 Ltd. (20 percent), ONGC Videsh Ltd. (10 percent), Beas Rovuma Energy Mozambique Limited (10 percent), BPRL Ventures Mozambique B.V. (10 percent), and PTTEP Mozambique Area 1 Limited (8.5 percent).
Representing South Africa’s energy sector, the Department of Mineral Resources, the Independent Power Producer Office and CEF group of companies including PetroSA, iGas, Strategic Fuel Fund and PASA will attend the Africa Oil & Power (AOP) conference and exhibition at the CTICC 1 in Cape Town, South Africa on October 9-11, 2019.
Algeria’s national oil company, Sonatrach and utility company Sonelgaz represented by CEO, Chaher Boulakhras, will also join the AOP 2019 program.