Mozambique Approves Changes To LNG Contracts With Anadarko, Eni
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)
WHAT DO YOU THINK?
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.
- Canadian Offshore Oil Interest Grows As Pipeline Woes Sink Alberta Prices (Dec 20)
- 4 Ways Agile Sourcing Can Lead Enterprises to Success (Nov 10)
- Gadfly: Anadarko Woke Up, and It Really Smells the Coffee (Nov 01)
Company: ENI more info
Operates 11 Offshore Rigs
- BSEE: Italy's Eni Begins Drilling Oil Well In Alaska's Beaufort Sea (Dec 27)
- Eni 'Mission Impossible' Points to Seismic Shift for Big Oil (Dec 22)
- Sanction-Proof Oil Rig Beats US Policy From Cuba to Russia (Dec 19)