Mozambique Approves Changes To LNG Contracts With Anadarko, Eni

Reuters

MAPUTO, Dec 7 (Reuters) - Mozambique's cabinet has approved changes to liquefied natural gas (LNG) contracts with U.S. oil major Anadarko and Italy's Eni to allow the two companies to sell the government's share of gas from projects in the Rovuma Basin.

"The government opted to relinquish its right to receive in kind its quota of available gas as well as the gas production tax. The aim is to turn the projects viable," government spokeswoman Ana Coana said late on Tuesday after the amendments were approved by cabinet.

"The concessionaires commit themselves to a joint-sale of liquefied natural gas in order to offer huge volumes and get better prices at the market."

The contracts relates to Anadarko's Dolphin Tuna project and Eni's South Coral project in areas 1 and 4 of the Rovuma basin.

Eni is expected to make a final investment decision on its LNG project by the end of this year, while Anadarko's investment decision is expected next year.

Mozambique has some 85 trillion cubic feet of gas reserves -- enough to supply Germany, Britain, France and Italy for nearly two decades. It is likely to take at least five years after final investment decisions before gas production begins.

(Reporting by Manuel Mucari, editing by Louise Heavens)

Copyright 2017 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Rudolf Huber | Dec. 8, 2016
Lets just imagine both projects really take FID in 2017 or 2018. That would put another huge dollop of LNG onto the market just at a time when the market will have started to mop up the oversupply we have now or that is coming. Add in some more US LNG and its going to be buyers market well beyond my retirement age. Except - of course - gas as a vehicle fuel eats into the oil market big time.


Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Frac Equipment Operator
Expertise: Heavy Machinery Operator|Refinery / Plant Operator|Truck / HGV Driver
Location: San Antonio, TX
 
Operations Support Technician
Expertise: Maintenance Technician|Mechanical Technician
Location: Oklahoma City, OK
 
QC Inspector
Expertise: QA / QC / Inspection
Location: Plaquemine
 
search for more jobs

Brent Crude Oil : $50.75/BBL 0.09%
Light Crude Oil : $47.73/BBL 0.50%
Natural Gas : $3.05/MMBtu 0.97%
Updated in last 24 hours