Anadarko Petroleum Corp. said Sunday night it had signed a deal to sell a 10 percent interest in an offshore Mozambique natural gas block to Indian company ONGC Videsh for $2.64 billion.
Anadarko, based in The Woodlands, is to remain the operator of what is known as Mozambique’s Offshore Area 1 and will also have a working interest of 26.5 percent.
The company said it expects to use the proceeds to speed up short- and medium-term opportunities for oil and liquids projects in the United States, such as in the Eagle Ford Shale and Permian Basin, among others. Andarako also cited opportunities in the Gulf of Mexico.
In a statement, ONGC Videsh — which is a subsidiary of Oil and Natural Gas Corp. — said that Area 1 has the potential to become one of the world’s largest producing liquified natural gas hubs.
“This transaction demonstrates our continuing ability to create substantial value through exploration and to again accelerate the value of our longer-dated projects through attractive monetizations and third-party capital,” Anadarko CEO Al Walker said in a statement. “Mozambique LNG is a premier global energy project, and we look forward to working with our partners and the government to advance this world-class development.”
Area 1 is operated by Anadarko Mozambique Area 1 Limitada and is located in Mozambique’s deepwater Rovuma Basin. The block contains the Prosperidade and Golfinho/Atum natural gas complexes that combined hold an estimated 35 to 65-plus trillion cubic feet of recoverable natural gas resources. In cooperation with the Government of Mozambique, Anadarko, its partners, and Eni are working to develop LNG park with first LNG cargoes expected in 2018.
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