Houston, United States — 27 August 2013 – Anadarko Petroleum Corporation has announced that it has entered into a definitive agreement with ONGC Videsh limited “’ a wholly-owned subsidiary of Oil and Natural Gas Corporation Limited “’ to sell a 10% stake in Mozambique’s Offshore Area 1 for US$2.64 billion in cash. Anadarko will remain the operator of Area 1 with a working interest of 26.5%.

The acquisition of an additional 10% Interest in Area 1 follows the company’s earlier announcement of a joint acquisition, with Oil India Limited of an indirect 10% interest in Area 1, from Videocon Mauritius Energy Limited. BPRL Ventures Mozambique B.V., another Indian PSU already holds a 10% interest in Area 1.

“This transaction demonstrates our continuing ability to create substantial value through exploration, and to again accelerate the value of our longer-dated projects through attractive monetisations and third-party capital,” said Anadarko chairman, president and CEO Al Walker. “Mozambique LNG is a premier global energy project, and we look forward to working with our partners and the government to advance this world-class development.

"As the operator of Area 1, we are very pleased to have reached this agreement with OVL, which values our pre-transaction interest at more than US$9.6 billion. We expect to use the net proceeds from this transaction to further accelerate the short- and intermediate-term oil and liquids opportunities we have in the Wattenberg field, Eagleford Shale, Permian and Powder River basins, and the Gulf of Mexico and other plays in our portfolio,” he added.

“Our objective with this allocation of capital will be to further increase our cash-flow growth with attractive wellhead margins, while providing additional value to our shareholders as evidenced by our recent dividend increase and continued portfolio-management activities.

“The transaction is expected to close around the end of 2013, and is subject to existing preferential rights, governmental approvals and other customary closing conditions,” Walker continued.

Area 1 is operated by Anadarko Mozambique Area 1 Limitada (a wholly owned indirect subsidiary of Anadarko) and is located in Mozambique’s deepwater Rovuma Basin. The block contains the Prosperidade and Golfinho/Atum natural gas complexes that hold an estimated combined 35 to 65-plus trillion cubic feet (Tcf) of recoverable natural gas resources.

In cooperation with the government of Mozambique, Anadarko, its partners, and Eni (as the operator of the adjacent Area 4 block) continue to advance the development of an LNG park with first LNG cargoes expected in 2018.

Anadarko’s partners in Area 1 include Mitsui E&P Mozambique Area 1, Limited (20%), BPRL Ventures Mozambique B.V. (10%), Videocon Mozambique Rovuma 1 Limited (10%) and PTT Exploration & Production plc (8.5%). Empresa Nacional de Hidrocarbonetos, E.P.’s (ENH) 15% interest is carried through the exploration phase.

Source: Anadarko Petroleum Corporation. For more information, click here.