Mozambique LNG1 Company Pte. Ltd., the jointly owned sales entity of the Mozambique Area 1 co-venturers, has signed a sale and purchase agreement (SPA) with JERA Co. Inc. (JERA) and CPC Corp. Taiwan (CPC), Anadarko Petroleum Corp. said in a news release May 13.
The SPA calls for the delivered ex-ship supply of 1.6 million tonnes per annum (MTPA) for a base term of 17 years from the commercial start date, the release said. The agreement boosts total long-term agreements for the project to 11.1 MTPA.
“This co-purchasing agreement with JERA and CPC brings together two prominent Asian foundation customers and will ensure a reliable supply of cleaner energy to meet the growing demands of both Japan and Taiwan,” said Mitch Ingram, executive vice president of international, deepwater and exploration for Anadarko. “We are excited to take the next step with the expected announcement of a final investment decision [FID] for the Mozambique LNG project on June 18, as we remain on track to complete the project financing process and secure final approvals.”
Anadarko, which entered a merger agreement with Occidental Petroleum Corp. on May 9, is developing Mozambique’s first onshore LNG facility consisting of two initial LNG trains with a total nameplate capacity of 12.88 MTPA to support the development of the Golfinho/Atum field located entirely within Offshore Area 1.
Occidental on May 5 announced an agreement to sell Anadarko’s African assets, including those in Mozambique, to Total SA for $8.8 billion.
Anadarko subsidiary Anadarko Moçambique Área 1 Lda operates Offshore Area 1 with a 26.5% working interest. Co-venturers include ENH Rovuma Área Um SA. (15%), Mitsui E&P Mozambique Area1 Ltd. (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Ltd. (10%), BPRL Ventures Mozambique B.V. (10%) and PTTEP Mozambique Area 1 Ltd. (8.5%).
A final investment decision is expected later this year.
The Ndungu-1 NFW well proved a 65-m oil column with 45 m of net pay in Oligocene sandstones with excellent petrophysical properties, Eni said in a news release.
The company said May 20 it was officially awarded an exploration license for the 4,418-sq-km block after placing the winning bid during Argentina’s international bid round April 16.