Name of the Project
Area 1 liquefied natural gas (LNG) facility.

Location
The project proposes to develop an LNG facility on the Afungi peninsula in Cabo Delgado province, in Mozambique.

Project Owner/s
Anadarko Moçambique Área 1, a wholly owned subsidiary of Anadarko Petroleum Corporation, operates Offshore Area 1, with a 26.5% working interest. Co-venturers include ENH Rovuma Área Um (15%), Mitsui E&P Mozambique Area1 (20%), ONGC Videsh (10%), Beas Rovuma Energy Mozambique (10%), BPRL Ventures Mozambique (10%) and PTTEP Mozambique Area 1 (8.5%).

Project Description
Offshore Area 1 contains about 75-trillion cubic feet of recoverable natural gas.

The project involves the development of Mozambique’s first onshore LNG facility, comprising two initial LNG trains, with a total nameplate capacity of 12.88-million tonnes a year to support the development of the Golfinho/Atum field, located entirely within Offshore Area 1.

The project has scope to increase production to 50-million tons.

Gas from the Anadarko-operated offshore field will be sent to an onshore processing plant, where it will be liquefied and then exported. The plant is being built in the northern Cabo Delgado province.

Potential Job Creation
Area 1 has about 5 000 workers on site progressing works associated with the construction of a resettlement village, camp expansion, an airstrip and the Palma-Afungi Highway.

Capital Expenditure
$25-billion. The project will be funded with $11-billion of equity and $14-billion of debt.

Planned Start/End Date
Not stated.

Latest Developments
Anadarko Petroleum has approved the project.

Meanwhile, Occidental Petroleum agreed to buy Anadarko earlier this year. Once that deal is completed, Total has an arrangement with Occidental to acquire all Anadarko’s African assets for $8.8-billion, including its Mozambican assets. Meanwhile, Anadarko has implemented a resettlement programme in the area, and is building roads and an airport. The company has said it will continue to develop the infrastructure until Total takes over.

Key Contracts and Suppliers
TechnipFMC, through its subsidiary FMC Technologies (subsea trees, completion workover riser and installation workover control system, subsea controls system, subsea connectors and production manifolds); TechnipFMC, through its subsidiary Technip Mozambique and Oceaneering International (aftermarket services in Mozambique); Oceaneering International (subsea umbilicals and distribution hardware); Advanced Technology (pipeline subsea ball and subsea gate valves); Cameron Italy (subsea chemical injection metering valves engineering, procurement, construction and installation (EPCI) for the offshore subsea system); TechnipFMC and VanOord (EPCI of the offshore subsea system, engineering, procurement and construction (EPC) for the LNG facility and support facilities); and McDermott, Chiyoda and Saipem EPC contracts for the Mozambique LNG liquefaction facility and support facilities).

On Budget and on Time?
It’s taken Anadarko almost a decade to get the development approved after discovering gas in Mozambican waters in 2010. The country had to draft new regulations for its nascent oil and gas industry, even as uncertain global demand for LNG slowed plans.

Contact Details for Project Information
Anadarko Petroleum Corporation investor relations Mike Pearl, tel +1832636 3271 or email mike.pearl@anadarko.com.