Anadarko’s offshore Mozambique Offshore Area 1 development has taken a step closer with the signing of contractors for the onshore LNG terminal.
A consortium consisting of CB&I, Chiyoda Corp. and Saipem were picked following a front end engineering and design (FEED) tender process. However, US-based explorer Anadarko still has to make a final investment decision (FID) on the project, near Afungi in the northern Cabo Delgado Province, before final contracts can be signed. Once completed, the project would unlock some 75 Tcf of gas in Offshore Area 1, in Mozambique’s Rovuma Basin.
Image: Operations offshore Mozambique. Image from Anadarko.
The so-called onshore LNG park, described by Anadarko as one of the world’s largest LNG developments, would cover about 17,000 acres and include two LNG trains, each with 6 MM tonnes per year capacity. The scope also includes two LNG storage tanks, each with 180,000cu m capacity, condensate storage, multi-berth marine jetty and associated utilities and infrastructure.
Mozambique has been described as the third largest provide natural gas reserve holder in Africa, after Nigeria and Algeria. Alongside Anadarko, Italy’s Eni has led exploration off Mozambique.
Anadarko made its first Offshore Area I discovery in 2010. Since then it has drilled some 40 deepwater wells offshore Mozambique, making the Golfinho/Atum, Prosperidade, Orca, Tubarao, and Tubarao Tigre discoveries.
Anadarko’s Prosperidade and Eni’s Mamba discovery stride Area 1 and Area 4, according to the US Energy Information Administration (EIA). Eni is also considering building a 2.5-Mmtpa (or 120 Bcf) floating LNG facility in Area 4, says the EIA.
However, there have been delays on the country’s latest licensing round. The fifth licensing round application deadline close was pushed back to 30 July this year, “to allow the completion of the required legal documentation,” according to the authorities. The opening of the Fifth License Round was announced in Maputo and London in October 2014. Fifteen blocks were included comprising some 76,800sq km in the offshore Rovuma, offshore Zambezi, offshore Angoche, onshore around the Pande-Temane concession and onshore Palmeira areas.
"Selecting CCS JV for the development of the onshore Mozambique LNG park is a significant step toward reaching FID and demonstrates our continued commitment to advancing this important project toward first cargoes," said Anadarko Chairman, President and CEO, Al Walker. "I look forward to working with the Offshore Area 1 co-venturers to submit a Plan of Development in the coming months for the Government's consideration."
Anadarko operates the Offshore Area 1 with a 26.5% working interest, with partners Empresa Nacional de Hidrocarbonetos (15%), Mitsui E&P Mozambique Area1 (20%), ONGC Videsh (16%), Bharat PetroResources (10%), PTT Exploration & Production (8.5%), and Oil India (4%).
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