Anadarko and Eni inked a unitization and unit operating agreement (UUOA) to develop 24 Tcf of natural gas reserves from two blocks offshore Mozambique.
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Image of Mozambique operations, from Anadarko. |
The development of natural gas reservoirs will come from the two straddling blocks: the Anadarko-operated Offshore Area 1, and Eni-operated Offshore Area 4, that are located in the Rovuma basin, off the northern coast of Mozambique.
The deal encompasses the straddling natural gas reservoirs Mamba in Area 4, and Prosperidade in Area 1. They will both be developed separately, but in a coordinated manner between Anadarko and Eni, until 24 Tcf of natural gas reserves, 12 Tcf from each area, have been developed. Future developments will be jointly pursued by Area 1 and Area 4 concessionaires through a 50:50 joint venture operator comprised of Anadarko and Eni.
Eni’s Area 4, the world’s fifth largest natural gas discover in the last 30 years, has more than 85 Tcf natural gas resources in place.
Anadarko’s Area 1 has more than 75 Tcf of recoverable natural gas resources since 2010.
The agreement is subject to final approval from the government of Mozambique.
"We have already made tremendous progress advancing the natural gas resources in the Golfinho and Atum fields that are fully contained within our block, and with this UUOA, we can also expect to move the Prosperidade and Mamba straddling reservoirs forward more efficiently, while capitalizing on greater economies of scale," Mitch Ingram, Anadarko executive VP, global LNG said.
Operator Anadarko holds 26.5% in Area 1 along with parnters National Oil Co. Empresa Nacional de Hidrocarbonetos (ENH) (15%), Mitsui E&P Mozambique Area 1 (20%), Beas Rovuma Energy Mozambique (10%), BPRL Ventures Mozambique B.V. (10%), ONGC Videsh (10%), and PTTEP Mozambique Area 1 (8.5%).
Eni operates Area 4 with a 50% indirect interest owned through Eni East Africa (EEA), which holds 70% of Area 4. Partners include Galp Rovuma (10%), KOGAS Mozambique (10%) and ENH (10%). CNODC owns a 20% indirect participation in Area 4 through Eni East Africa.
Woodlands, Texas-based Anadarko also reached a memorandum of understanding (MOU) with the government of Mozambique to provide natural gas from its Mozambique LNG development for domestic use.
According to the MOU, Offshore Area 1 will provide initial volumes of approximately 50 MMcf/d of natural gas per train (100 MMcf/d) for domestic use in Mozambique.
The concessionaires are prepared to sell up to 300 MMcf/d of additional volumes into the domestic market in future years as projects are matured and commercial terms agreed, Anadarko said.
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