Anadarko expands massive Mozambique discovery

Anadarko has expanded the size of its already massive natural gas discovery offshore Mozambique, after its Golfinho exploration well struck more than 193 net feet of natural gas pay, the company announced Tuesday.

The discovery adds an estimated 7 trillion to 20 trillion cubic feet of recoverable natural gas to Anadarko’s finds in the deep-water Rovuma Basin, about 10 miles of the African country’s coast.

The well, which is 14,885 feet deep, was drilled 3,370 feet below the ocean’s suface.

Chief Executive Officer Al Walker said he expects the size of the Mozambique discovery to expand further.

“Today, our plans are to continue exploration with the next two wells,” Walker said.  “Once we understand better exactly how much gas we have in place, then we’ll try to make a better decision than we can today on how we might monetize that.”

Walker said the company could develop the reserves itself or sell off part or the entire discovery. The decision likely won’t come until late this year or early 2013, depending on the value of the resources and interest expressed by potential buyers, he said.

“We’ll look at the whole gamut of opportunities,” Walker said.

Walker commented on the discovery after the company’s annual shareholders’ meeting that was held at the Waterway Marriott in The Woodlands this morning. It is Walker’s first day as CEO, succeeding James Hackett, who is now executive chairman.

Anadarko, based in The Woodlands, is operator of Offshore Area 1, where the successful well was drilled. It has a 36.5-percent working interest in the area, co-owned by Mitsui E&P Mozambique ARea 1, Limited, BPRL VEnutres Mozambique B.V., Videocon Mozambique Rovuma 1 Limited and Cove Energy Mozambique Rovuma Offshore.