Anadarko: 'Minimal' 2016 Spend on Mozambique
Anadarko has said its capital expenditure will be cut by almost 50% to $2.6bn-$2.8bn, of which ‘international’ spending – outside the US – will be $700mn. It also flagged plans to monetize up to $3bn of assets in 2016, and said that $1.3bn in sales in the US had been announced or closed so far this year.
At its March 1 Investor Day, Anadarko announced it “expects minimal funding in 2016” in Mozambique “as it works three parallel paths toward a final investment decision for its LNG project." It said these paths include: securing the necessary legal and contractual framework; progressing more than 8mn metric tons/yr of offtake toward long-term sales contracts; and advancing project financing. Anadarko and its partners in Mozambique’s Offshore Area 1 have found more than 75 trillion ft3 (2.12 trillion m3) of recoverable gas. In late 2015 it reached a unitisation agreement with Eni which operates Area 4.
Offshore Ghana, Anadarko said it expects to achieve first oil at the TEN complex in third quarter 2016. Last month, TEN operator Tullow said the project is 85% complete with first oil due July/August this year; it expects associated gas from the same offshore fields is expected to be delivered to shore next year. Anadarko has a 17% interest in TEN.
Anadarko also said its planned international activity in 2016 will include efforts to advance its Paon oil discovery offshore Côte d'Ivoire toward potential development with one appraisal well, a drill-stem test, and two exploration wells.