HOUSTON – Anadarko Petroleum Corp. and its partners in Mozambique’s Offshore Area 1, and the Eni-led consortium for Offshore Area 4, have signed a unitization and unit operating agreement (UUOA) for development of gas resources overlapping the two blocks.
Mitch Ingram, Anadarko’s executive vice president, Global LNG, said: “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.”
Under the terms of the UUOA and Mozambique’s previously announced Decree Law, the Prosperidade and Mamba straddling natural gas reservoirs will be developed in a separate but coordinated manner by the two operators up to a ceiling of 24 tcf (12 tcf from each Offshore Area).
All subsequent development will be pursued jointly by the Area 1 and Area 4 concessionaires through a joint-venture operator (50:50 Anadarko and Eni). The terms remain subject to approval by Mozambique’s government.
In addition, Anadarko has a memorandum of understanding with the government to provide natural gas from its Mozambique LNG development for domestic use.
Offshore Area 1 will provide an initial 50 MMcf/d per train for this purpose at a price that supports local natural gas development, and the partners can sell additional volumes of up to 300 MMcf/d to the domestic market in future years as more projects are matured and commercial terms agreed.
Ingram said: “We look forward to continuing to work with the government of Mozambique to finalize the legal and contractual framework that will enable us to deliver natural gas for domestic projects and LNG cargoes for export to premium markets around the world...”
Anadarko operates the Offshore Area 1 block in partnership with the national oil company Empresa Nacional de Hidrocarbonetos (ENH), Mitsui E&P Mozambique Area 1, Beas Rovuma Energy Mozambique, BPRL Ventures Mozambique, ONGC Videsh, and PTTEP Mozambique Area 1.
Eni operates Area 4 in concert with Galp Rovuma, KOGAS Mozambique, and ENH. CNODC has a 20% indirect participation in Area 4 via Eni East Africa.
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