TOTAL SA closed its acquisition of Anadarko Petroleum Corp.'s stake and operatorship of the Mozambique liquefied natural gas project for $3.9 billion, which is part of Total's $8.8 billion purchase of African assets from Occidental Petroleum Corp.
Total and Occidental entered into a purchase and sale agreement for the African assets Aug. 3 after signing a binding agreement May 3. Occidental acquired the assets through its $55 billion merger with Anadarko.
The Mozambique LNG project will start production in 2024. About 90% of its capacity already has buyers in Asia and Europe through long-term contracts, according to a Sept. 30 news release from Total. Total expects an LNG portfolio of about 40 million tonnes per year by 2020.
The Mozambique project involves building two trains with a capacity of 12.9 million tonnes per year and developing the Golfinho and Atum fields in offshore area 1 for its resource. The trains will develop 18 Tcf of area 1, which contains more than 60 Tcf of gas resources.
The project, the first onshore LNG development in the country, is also considered to be the largest sanction in sub-Saharan Africa oil and gas. Anadarko Petroleum and its partners made the final investment decision in June.
Total is also working to complete the acquisition of Anadarko's assets in other countries including Algeria, Ghana and South Africa.
Total now holds a 26.5% stake in the Mozambique LNG project, while Mitsui E&P Mozambique Area 1 Ltd. owns a 20% interest. ENH Rovuma Área Um SA has a 15% stake. India's ONGC Videsh Ltd., Beas Rovuma Energy Mozambique Ltd. and BPRL Ventures Mozambique BV hold 10% each. PTTEP Mozambique Area 1 Ltd. owns an 8.5% stake.
