Continental Focus, International Reach

Mozambique Approves Anadarko’s Development Plan

Thursday, February 8, 2018

Anadarko Petroleum’s development plan for the LNG project in Mozambique has been approved by the East African country’s council of ministers. The project will come with a price tag estimated at around $20 billion.

The US independent’s next major hurdle is to sign enough sales and purchase agreements (SPAs) to make the project financially viable. Once Anadarko and its partners are over the SPA hurdle the FID on Area 1 should be reached.

Anadarko and its partners have agreed to the price and volumes for 5.1 million metric tons per year of gas production, out of the 8.5 million tons required to reach financial close, the company said in a statement.