(2015-05-22) The Texas-based oil and gas company Anadarko says that it is determined to advance towards a final investment decision on building a liquefied natural gas (LNG) factory in the northern Mozambican province of Cabo Delgado. “We want a guarantee that we can implement a project of this magnitude in an efficient and effective manner,” MacLiver told the press at the end of today’s meeting with Prime Minister Agostinho do Rosário.
Anadarko’s Vice President for Operations, Don MacLiver, at the end of an audience in Maputo granted by Mozambican Prime Minister Carlos Agostinho do Rosario on Friday, said that the company’s discussions with the government seek to guarantee the effective development of the project.
“There are agreements which we have to conclude to ensure that we can operate and exploit the gas”, MacLiver told reporters. “We want a guarantee that we can implement a project of this magnitude in an efficient and effective manner”.
None of the physical work required to build the LNG factory has begun yet, although a 7,000 hectare site on the Afungi Peninsula in Palma district, the nearest area on the mainland to the offshore gas fields, has been identified. The start of construction work depends on the contacts with the government and completing the necessary agreement.
There may be a legal snag, in that a team of jurists fired by civil society organizations, claims that the land title (DUAT) granted to Anadarko is illegal. Once such obstacles are overcome, and the relevant agreements are signed, Anadarko can push ahead with the largest private investment in Mozambican history. Total investment in the LNG factory is estimated at 20 billion US dollars.
Anadarko announced on Monday that it has selected a consortium of companies who will construct the LNG facility. The consortium, called CCS JV, consists of the Chicago Bridge and Iron Company (CB&I), a multinational company based in the Netherlands; the Chiyoda Corporation, a large engineering company based in Yokohama in Japan; and Saipem, a subsidiary of the Italian hydrocarbon company ENI.
The company’s President, Al Walker, said that selecting CCS JV “is a significant step toward reaching a Final Investment Decision and demonstrates our continued commitment to advancing this important project”.
Anadarko is the operator in Rovuma Basin Area 1, located off the coast of Cabo Delgado, which is estimated to hold more than 75 trillion cubic feet of natural gas. Anadarko holds a 26.5 per cent stake in Area 1. The other members of the consortium are Mitsui of Japan (20 per cent), ONGC Videsh (16 per cent), Oil India (four per cent), BPRL Ventures (ten per cent) and PTT of Thailand (8.5 per cent). In addition, Mozambique’s National Hydrocarbon Company, ENH, holds a 15 per cent stake.
MacLiver also categorically denied the recent reports that Anadarko is planning to sell its stake in the Rovuma Basin, and was already talking with banks to negotiate the sale.
These were nothing but rumours, said MacLiver. The very fact that Anadarko has hired a consortium to build the LNG factory shows that it is determined to advance with the project, he declared.
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