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Anadarko Petroleum Makes FID on Mozambique LNG Project

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Anadarko Petroleum Corporation  and the co-venturers in Mozambique's Offshore Area 1 made a final investment decision (FID) on the Mozambique LNG project. The facility will be Mozambique's first onshore LNG unit.

The project comprises two LNG train with total initial capacity of 12.88 million tonnes per annum (MTPA). Of the total capacity, 86% is committed by the key LNG buyers in Asia and Europe. Moreover,the project is expected to boost Mozambique's in-country consumption as well as contribute to domestic economic development.

Development in Mozambique LNG project

Anadarko’s asset portfolio comprises a natural-gas discovery in Mozambique. Anadarko Petroleum continued to make significant progress with the Mozambique LNG project. Recently, Mozambique LNG1 has signed a Sale and Purchase Agreement with JERA Co., Inc (JERA) and CPC Corporation, Taiwan (CPC) for 17 years for ex-ship supply of 1.6 million tonnes per annum MTPA).

Shifting to Liquid Composition in Production Mix

Anadarko Petroleum is gradually shifting to a greater liquid composition in its total production mix.The transition towards high-quality domestic onshore assets has started to yield results. In the first quarter, average daily sales volume increased 11.2% year over year to 715,000 barrels of oil equivalent per day (boe/d). Onshore assets generated sales volume of 465,000 boe/d, up 15% from the prior-year quarter’s figure.

Acquisition Agreement

The company has a strong asset base in the Permian Basin and premium shale properties, which include the Delaware and Denver-Julesburg basins, the Deepwater Gulf of Mexico as well as Powder River basin. These assets are well placed to boost stakeholders’ value over the long term.

Initially, Chevron Corp. (CVX - Free Report) made a bid for Anadarko Petroleum. However, Occidental Petroleum (OXY - Free Report) raised its bid, and Chevron decided to move out with $1-billion breakup fee. Moreover, TOTAL S.A. has entered into a binding agreement with Occidental to acquire Anadarko Petroleum’s assets in Africa (for a consideration of $8.8 billion), which includes Mozambique holdings.

Zacks Rank & Price Performance

Anadarko Petroleum currently sports a Zacks Rank #1 (Strong Buy). You can see  the complete list of today’s Zacks #1 Rank stocks here

Shares of the company have surged 59.4%, compared with the industry’s gain of 1.1% year to date.

 

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