Anadarko Puts Price Tag on Mozambique Development

US-independent Anadarko Petroleum Corp. has put a price tag on the development of its substantial gas resources offshore East Africa’s Mozambique, $15 billion. The $15 billion price tag includes the total cost of offshore development and construction of a new two-train LNG terminal.

The company is in talks with another company that has seen huge success offshore Mozambique, ENI, on jointly developing their found reserves. "We are in talks with ENI about combining efforts both on the offshore development and on building a liquefaction facility onshore," Scott Moore, VP of Marketing, told Dow Jones Newswires.

An spokeswoman from the Italian company confirmed talks were ongoing with Anadarko on the possibility of a joint offshore development, but declined to comment on the possibility of teaming up to build the onshore LNG facility.

The commercial pacts are currently being agreed between the two companies, Moore told Dow Jones Newswire, adding that "we see ourselves as staying on as operator of the project." Although the ENI spokeswoman said it's premature to talk about the operatorship of a combined project.

A final investment decision is expected next year, with the first LNG possibly hitting the market in 2018.