Anadarko, Eni Ink HOA for Coordinated Development of Gas Reserves in Mozabique

Anadarko Petroleum Corporation today announced that it has reached Heads of Agreement (HOA) with Eni, establishing foundational principles for the coordinated development of the common natural gas reservoirs spanning both Mozambique’s Offshore Area 1 (operated by Anadarko) and Offshore Area 4 (operated by Eni).

The HOA is designed to facilitate a work program whereby the two operators will conduct separate, yet coordinated, offshore development activities, while jointly planning and constructing common onshore liquefaction facilities in the form of an LNG (liquefied natural gas) park in the Cabo Delgado Province of northern Mozambique.

“Reaching an HOA with Eni is a significant step that preserves the project timeline,” said Anadarko President and CEO Al Walker. “We expect the HOA to lead to a unitization agreement to further facilitate the efficient development of the common resources, as well as the independent reservoirs on both blocks, enabling enhanced economies of scale through shared infrastructure and facilities. Our commercial and technical teams have proven the ability to work collaboratively through these discussions, as we work alongside the Mozambican government toward a shared target of first LNG cargoes in 2018.”

FRONT-END ENGINEERING AND DESIGN (FEED) CONTRACTS

In addition, multiple FEED contracts have been awarded for both onshore LNG construction and offshore installation.

“We are very pleased to also announce the awarding of multiple FEED contracts advancing the onshore and offshore components of this LNG project in northern Mozambique,” continued Walker. “Awarding FEED is an important event for Mozambique, as it marks a significant milestone in the development cycle of this project. We are pleased with the alignment of our co-venturers and 2 grateful for the support of ENH and the government of Mozambique in moving this world-scale project forward.”

OFFSHORE AREA 1

Anadarko is the operator of the Offshore Area 1 Block with a 36.5-percent working interest. Coventurers include Mitsui E&P Mozambique Area 1, Limited (20 percent), BPRL Ventures Mozambique B.V. (10 percent), Videocon Mozambique Rovuma 1 Limited (10 percent) and PTT Exploration & Production Plc (8.5 percent). Empresa Nacional de Hidrocarbonetos, ep’s (ENH) 15- percent interest is carried through the exploration phase.

To date, Anadarko and its co-venturers have discovered two major natural gas complexes in the Offshore Area 1 of Mozambique’s Rovuma Basin. The Prosperidade complex is estimated to hold between 17 and 30-plus trillion cubic feet (Tcf) of recoverable natural gas resources in the Offshore Area 1 Block. The separate and distinct Golfinho/Atum complex, which is fully contained within the Offshore Area 1 Block, is estimated to hold 15 to 35 Tcf of recoverable natural gas resources. Evaluation of a third discovery on the block, Tubarão, is ongoing with an appraisal well that is expected to be drilled in early 2013.

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Press Release, December 21, 2012