Anadarko sells stake in offshore Mozambique Area 1

Anadarko Petroleum Corp. agreed to sell a 10% stake in its offshore Mozambique Area 1 to ONGC Videsh Ltd., a wholly owned subsidiary of Oil & Natural Gas Corp. Ltd., for $2.64 billion.

After closing, expected by Dec. 31, Anadarko will remain Area 1 operator with 26.5% working interest. Closing is subject to preferential rights by partners and governmental approvals.

Area 1, in deepwater Rovuma basin, contains the Prosperidade and Golfinho-Atum natural gas complexes that hold an estimated 35-65 tcf of recoverable natural gas.

In cooperation with Mozambique’s government and others, Anadarko said it will continue developing an LNG park scheduled to begin operations in 2018.

Al Walker, Anadarko chairman, president, and chief executive officer, said Anadarko will invest the pending sale proceeds in US projects in Wattenberg field, Eagle Ford shale, Permian and Powder River basins, and Gulf of Mexico offshore plays.

Anadarko's Area 1 partners include Mitsui E&P Mozambique Area 1 Ltd. 20%, BPRL Ventures Mozambique BV 10%, Videocon Mozambique Rovuma 1 Ltd. 10%, and PTT Exploration & Production PLC 8.5%.

Empresa Nacional de Hidrocarbonetos EP holds 15% interest through the exploration phase.

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