Continental Focus, International Reach

FID Taken on MZLNG

Thursday, June 20, 2019

Anadarko Petroleum and its co-venturers in Mozambique’s Offshore Area 1, took the FID on the Anadarko-led Area 1 Mozambique LNG project. This official declaration of FID confirms the Area 1 Plan of Development is now effective with notice provided to the Mozambican government that all conditions precedent have been fulfilled, and the project can now advance to the construction phase.

The official declaration of FID was made at a sanctioning event in Maputo, Mozambique, attended by President Filipe Nyusi, the Minister of Mineral Resources Ernesto Max Tonela, and Anadarko’s Chairman and CEO Al Walker, along with representatives from the Area 1 co-venturers and distinguished guests.

President Nyusi said the project was “one of the most important and transformational projects in our country’s history.”

The project will be the country’s first onshore LNG development, initially consisting of two LNG trains with total nameplate capacity of 12.88 mtpa to support the development of the Golfinho/Atum fields located entirely within Offshore Area 1.

The project has successfully secured in aggregate 11.1 mtpa of long-term LNG sales (representing 86% of the plant’s nameplate capacity) with key LNG buyers in Asia and in Europe. Additionally, the project is expected to have a significant domestic gas component for in-country consumption to help fuel future economic development.

The Area 1 Mozambique LNG project has been designated as “First Mover” by the government, meaning Area 1 will also be responsible for constructing the support facilities to be shared between Area 1 and Area 4 projects, which will include the Materials Offloading Facility and the LNG Marine Terminal. In addition, Area 1 has approximately 5,000 workers on-site today progressing works associated with the construction of a resettlement village, camp expansion, airstrip, and Palma-Afungi Highway.

King & Spalding advised Anadarko on the Mozambique LNG project since inception. Including negotiating with the relevant governmental entities and advising and negotiating on the onshore and offshore construction contracts and long-term LNG sales and purchase agreements