Name of the Project
Area 1 liquefied natural gas (LNG) facility.

Location
The project proposes to develop an LNG facility on the Afungi peninsula in Cabo Delgado province, in Mozambique.

Project Owner/s
Total will be the main operator of Mozambique LNG, with a stake of 26.5%. ENH Rovuma Área Um will own 15% and Mitsui E&P Mozambique Area1 Ltd 20%. ONGC Videsh, Beas Rovuma Energy Mozambique Limited and BPRL Ventures Mozambique will each own 10% and PTTEP Mozambique Area 1 Ltd 8.5%.

Project Description
Offshore Area 1 contains about 75-trillion cubic feet of recoverable natural gas.

The project involves the development of Mozambique’s first onshore LNG facility, comprising two initial LNG trains, with a total nameplate capacity of 12.88-million tonnes a year to support the development of the Golfinho/Atum field, located entirely within Offshore Area 1.

The project has scope to increase production to 50-million tons.

Gas from the Anadarko-operated offshore field will be sent to an onshore processing plant, where it will be liquefied and then exported. The plant is being built in the northern Cabo Delgado province.

Potential Job Creation
Area 1 has about 5 000 workers on site, progressing works associated with the construction of a resettlement village, camp expansion, an airstrip and the Palma-Afungi Highway.

Capital Expenditure
$25-billion. The project will be funded with $11-billion of equity and $14-billion of debt.

Planned Start/End Date
A final investment decision was announced in June, and production is expected by 2024.

Latest Developments
The project is expected to receive about $15-billion of financing commitments at a signing ceremony scheduled for June, Rand Merchant Bank (RMB) oil and gas coverage head Jonathan Ross has said.

RMB is part of a consortium of banks providing commitments to finance the Mozambique LNG project, which will be led by Total, and is expected to generate upwards of $40-billion in revenue for government over its life span.

For RMB, the deal will follow other financing commitments in the oil and gas sector in Mozambique. The bank was a cofunder and added to initial commitments for the Coral South floating liquefied natural gas (FLNG) project located off the shore of Mozambique – the first FLNG project in Africa.

“It will be a remarkable achievement in the circumstances. The backdrop could not have been worse for Total and partners to raise huge volumes of long-tenor funding, as the economic fallout of Covid-19 has put enormous pressure on banks’ funding and capital, and has triggered an oil price crash,” Ross has noted.

“It is particularly encouraging to see rare progress for such a large and important project in what is a primary revenue-generating industry in Africa.”

Ross has commended Mozambique LNG and Total for continuing to invest in the project along the original timeline.

Key Contracts and Suppliers
TechnipFMC, through its subsidiary FMC Technologies (subsea trees, completion workover riser and installation workover control system, subsea controls system, subsea connectors and production manifolds); TechnipFMC, through its subsidiary Technip Mozambique and Oceaneering International (aftermarket services in Mozambique); Oceaneering International (subsea umbilicals and distribution hardware); Advanced Technology (pipeline subsea ball and subsea gate valves); Cameron Italy (subsea chemical injection metering valves engineering, procurement, construction and installation (EPCI) for the offshore subsea system); TechnipFMC and VanOord (EPCI of the offshore subsea system, engineering, procurement and construction (EPC) for the LNG facility and support facilities); and McDermott, Chiyoda and Saipem EPC contracts for the Mozambique LNG liquefaction facility and support facilities).

Contact Details for Project Information
Anadarko Petroleum Corporation investor relations Mike Pearl, tel +1832636 3271 or email mike.pearl@anadarko.com.