HomeNewsAnadarko Petroleum invests US$2.2 billion in Mozambique

Anadarko Petroleum invests US$2.2 billion in Mozambique

Maputo, Mozambique — 18 February, 2013 – United States oil group Anadarko Petroleum has invested US$2.2 billion in Mozambique so far in prospecting for oil and natural gas in Area 1 of the Rovuma basin, in the north of the country.

Cited in “Mais Valia,” the information bulletin of the Mozambique Tributary Authority, a source close to the company said that the amount spent so far on prospecting significantly exceeded the company’s initial commitment, which was to invest US$465 million.

Macauhub News Agency quotes the source as saying the investment so far has had positive results. The amount of gas in the block is estimated at over 50 trillion cubic feet, which means there are enough resources to ensure construction of a gas processing unit.

The group was authorised in 2006 to prospect for hydrocarbons under the terms of a licence granted by the Mining Resources Ministry. Prospecting is at an advanced stage following 19 test drills.

In the next two years, the group plans to build a natural gas liquefaction unit, and in the medium term, within around six years, “we expect the first ship exporting natural gas to leave the Rovuma basin,” the source said, according to Mozambican news agency AIM.

The project to build the natural gas processing unit is at the design stage, which also includes studies for economic, financial and technological feasibility.

The Mozambican oil block in question is operated by Anadarko Petroleum, which has a stake of 36.5%, and the remaining partners are Japan’s Mitsui & Co., with 20%, India’s Bharat Petroleum Corporation Limited and Videocon, with 10% each, Mozambique’s ENH has 15% and Thailand’s PTT, which owns 8.5%.

Discoveries made thus far show the existence of over 100 trillion cubic feet of natural gas in the Rovuma basin, which means that Mozambique could become one of the world’s largest natural gas producers.

Source: Macauhub News Agency. For more information, click here.