Total completes acquisition of Mozambique LNG stake

Total has completed its $3.9bn acquisition of Anadarko’s 26.5% operated interest in the Mozambique LNG project.

The closing comes after Total reached a binding agreement with Occidental on 3 May 2019 to acquire Anadarko’s assets in Africa (Mozambique, Algeria, Ghana and South Africa) and signed a subsequent purchase and sale agreement on 3 August 2019.

Mozambique LNG is the country’s first onshore LNG development. The project includes the development of the Golfinho and Atum fields located within Offshore Area 1 and the construction of a two-train liquefaction plant with a capacity of 12.9mn t/y. The Area 1 contains more than 60tn cf of gas resources, of which 18tn cf will be developed with the first two trains. The project is expected to come into production by 2024.

The Mozambique LNG project is largely derisked since almost 90% of the production is already sold through long-term contracts with key LNG buyers in Asia and in Europe. In addition, the project is expected to have a domestic gas component for in-country consumption to help fuel future economic development.

Total operates Mozambique LNG with a 26.5% participating interest alongside ENH Rovuma Área Um (15%), Mitsui E&P Mozambique Area 1 (20%), ONGC Videsh (10%), Beas Rovuma Energy Mozambique (10%), BPRL Ventures Mozambique (10%), and PTTEP Mozambique Area 1 (8.5%).

Closing operations are still ongoing in relation to Anadarko’s assets in Algeria, Ghana, and South Africa.