Total Closes $3.9B Anadarko MZ LNG Deal



Total Closes $3.9B Anadarko MZ LNG Deal
Total has closed its $3.9 billion acquisition of Anadarko's 26.5 percent operated interest in the Mozambique LNG project.

Total has closed its $3.9 billion acquisition of Anadarko’s 26.5 percent operated interest in the Mozambique LNG project, the company revealed Monday.

The development comes after Total reached a binding agreement with Occidental Petroleum Corporation on May 3 to acquire Anadarko’s assets in Mozambique, Algeria, Ghana and South Africa. Closing operations are still ongoing in relation to Anadarko’s assets in Algeria, Ghana and South Africa, Total revealed.

“Mozambique LNG is one of a kind asset that perfectly fits with our strategy and expands our position in liquefied natural gas”, Patrick Pouyanne, chairman and CEO of Total, said in a company statement.

“As the new operator, we are fully committed to the Mozambique LNG project and we will bring the best of our human, technical, marketing and financial capacities to further strengthen its execution,” he added.

“Total will of course work on the strong foundations established by the previous operator and its partners, in order to implement the project in the best interest of all those involved, including the government and the people of Mozambique,” Pouyanne continued.

Mozambique LNG, which is the country’s first onshore LNG development, includes the development of the Golfinho and Atum fields located within Offshore Area 1 and the construction of a two-trains liquefaction plant with a capacity of 12.9 million tons per year (Mt/y). The final investment decision on Mozambique LNG was announced on June 18 and the project is expected to come into production by 2024.

Total now operates Mozambique LNG, with a 26.5 percent interest, alongside ENH Rovuma Area Um, S.A. (15 percent), Mitsui E&P Mozambique Area1 Ltd. (20 percent), ONGC Videsh Ltd. (10 percent), Beas Rovuma Energy Mozambique Limited (10 percent), BPRL Ventures Mozambique B.V. (10 percent) and PTTEP Mozambique Area 1 Limited (8.5 percent).

Occidental completed its acquisition of Anadarko last month. Chevron revealed on April 12 that it had entered into an agreement to buy Anadarko. Twelve days later, Occidental Petroleum Corporation announced that it had made a proposal to acquire Anadarko. The company then went on to alter its offer. In May, Anadarko confirmed that it had terminated its deal with Chevron and that it had paid the company a termination fee of $1 billion.

Total is the second-largest private global LNG player, according to the company, which projects that it will have an overall portfolio of around 40 Mt/y by 2020.

To contact the author, email andreas.exarheas@rigzone.com



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