Total Seals Takeover of Mozambique LNG
France’s Total has closed its $3.9bn purchase of an operating stake in the Mozambique LNG project from Texan producer Anadarko Petroleum, it said in a statement on September 30.
Anadarko was bought by fellow Houston-based operator Occidental Petroleum in August for $55bn. That month Occidental also agreed to sell Anadarko’s assets in Mozambique and other African countries to Total under a deal worth $8.8bn.
Total now commands a 26.5% stake in Mozambique LNG – a $20bn scheme to produce up to 12.88mn mt/yr of LNG from gas resources in the Rovuma basin off Mozambique.
“Mozambique LNG is a one of a kind asset that perfectly fits with our strategy and expands our position in liquefied natural gas,” Total CEO Patrick Pouyanne said in a statement.
Almost 90% of Mozambique LNG’s future production has already been sold through long-term contracts with key buyers in Asia and Europe, the French firm said. The $20bn project, due on stream by 2024, was recently selected to receive a $5bn loan from the US Export-Import Bank (Exim).
Total’s partners in the venture are Japan’s Mitsui E&P (20%), India’s ONGC Videsh (10%) and BPRL Ventures Mozambique (10%), local players ENH Rovuma (15%) and Beas Rovuma Energy Mozambique (10%) and Thailand’s PTTEP (8.5%).
Total said it was still working on closing the purchase of Anadarko’s other African operations in Algeria, Ghana and South Africa.