Eni, Anadarko to jointly develop gas reserves offshore Mozambique

Offshore staff

MILAN, Italy – Eni (MI:ENI, NYSE:E) and Anadarko Petroleum Corp. (NYSE:APC) have signed a heads of agreement to start the coordinated development of common gas reserves offshore Mozambique.

The two companies will conduct separate, yet coordinated, offshore development plans covering both Eni’s Area 4 and Anadarko’s Area 1.

Further, the two companies plan to jointly build onshore LNG facilities in Cabo Delgado Province of northern Mozambique.

Eni is the operator of Area 4 with a 70% participating interest. The other partners of the joint venture are GalpEnergia (10%), KOGAS (10%) and ENH (10%, carried through the exploration phase).

Area 4 is in deepwater Rovuma basin and covers 12,956 sq km (5,000 sq mi) with water depths to 2,600 m (8,528 ft).

“We expect the HOA to lead to a unitization agreement to further facilitate the efficient development of the common resources, as well as the independent reservoirs on both blocks, enabling enhanced economies of scale through shared infrastructure and facilities,” said Al Walker, Anadarko president and CEO.

Anadarko is the operator of the Offshore Area 1 block with a 36.5% working interest. Coventurers include Mitsui E&P Mozambique Area 1, Ltd (20%), BPRL Ventures Mozambique B.V. (10%), Videocon Mozambique Rovuma 1 Ltd (10%), and PTT Exploration & Production Plc (8.5%). Empresa Nacional de Hidrocarbonetos, ep’s (ENH) 15% interest is carried through the exploration phase.

12/21/2012

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