French oil major Total has completed the acquisition of Anadarko's 26.5% stake in Mozambique's liquefied natural gas project for $3.9-billion, Total said on Monday, in a deal expected to raise much-needed revenue for Mozambique.
"Mozambique LNG is a one of a kind asset that perfectly fits with our strategy and expands our position in liquefied natural gas," Total chairman and CEO Patrick Pouyanne said in a statement.
Anadarko has agreed to be taken over by Occidental Petroleum Corp. Anadarko led a liquefied natural gas project in Mozambique, but was replaced by Total after the French oil major agreed to buy Anadarko's African assets for $8.8-billion as part of the Occidental takeover.
Total will be the main operator of Mozambique LNG with a stake of 26.5%. ENH Rovuma Área Um, will own 15%, Mitsui E&P Mozambique Area1 Ltd will hold 20%, ONGC Videsh, Beas Rovuma Energy Mozambique Limited and BPRL Ventures Mozambique will all each have 10%, while PTTEP Mozambique Area 1 Limited will have 8.5%.
Total said closing operations for Anadarko assets in Algeria, Ghana and South Africa were still ongoing.
It added that nearly 90% of the Mozambique LNG production has already been sold through long-term contracts with key LNG buyers in Asia and in Europe.
The project is expected to come into production by 2024.
The Mozambique government is targeting $880-million in capital gains tax from the takeover of Anadarko Petroleum by Occidental, local newspaper O Pais reported last week.
Mozambique's economy has been hobbled by a debt scandal in recent years, which prompted donors to cut off funding and deterred investors.
The southern African nation is banking on its massive natural gas reserves to lift millions out of poverty.