Anadarko Announces Advancement of Mozambique LNG Project

Fri Dec 21, 2012 1:01am EST

* Reuters is not responsible for the content in this press release.

HOUSTON, TX, Dec 21 (Marketwire) -- 
Anadarko Petroleum Corporation (NYSE: APC) today announced that it has
reached Heads of Agreement (HOA) with Eni, establishing foundational
principles for the coordinated development of the common natural gas
reservoirs spanning both Mozambique's Offshore Area 1 (operated by
Anadarko) and Offshore Area 4 (operated by Eni). The HOA is designed to
facilitate a work program whereby the two operators will conduct
separate, yet coordinated, offshore development activities, while jointly
planning and constructing common onshore liquefaction facilities in the
form of an LNG (liquefied natural gas) park in the Cabo Delgado Province
of northern Mozambique. 

    "Reaching an HOA with Eni is a significant step that preserves the
project timeline," said Anadarko President and CEO Al Walker. "We expect
the HOA to lead to a unitization agreement to further facilitate the
efficient development of the common resources, as well as the independent
reservoirs on both blocks, enabling enhanced economies of scale through
shared infrastructure and facilities. Our commercial and technical teams
have proven the ability to work collaboratively through these
discussions, as we work alongside the Mozambican government toward a
shared target of first LNG cargoes in 2018." 

    Front-End Engineering and Design (FEED) Contracts
 In addition, multiple
FEED contracts have been awarded for both onshore LNG construction and
offshore installation. 

    "We are very pleased to also announce the awarding of multiple FEED
contracts advancing the onshore and offshore components of this LNG
project in northern Mozambique," continued Walker. "Awarding FEED is an
important event for Mozambique, as it marks a significant milestone in
the development cycle of this project. We are pleased with the alignment
of our co-venturers and grateful for the support of ENH and the
government of Mozambique in moving this world-scale project forward."

    Supplemental Information
 Details regarding the awarding of FEED
contracts for the offshore installation and onshore LNG construction, as
well as conceptual diagrams of the LNG park can be found in the
supplemental information attached to this news release or on our website

    Offshore Area 1
 Anadarko is the operator of the Offshore Area 1 Block
with a 36.5-percent working interest. Co-venturers include Mitsui E&P
Mozambique Area 1, Limited (20 percent), BPRL Ventures Mozambique B.V.
(10 percent), Videocon Mozambique Rovuma 1 Limited (10 percent) and PTT
Exploration & Production Plc (8.5 percent). Empresa Nacional de
Hidrocarbonetos, ep's (ENH) 15-percent interest is carried through the
exploration phase.

    To date, Anadarko and its co-venturers have discovered two major natural
gas complexes in the Offshore Area 1 of Mozambique's Rovuma Basin. The
Prosperidade complex is estimated to hold between 17 and 30-plus trillion
cubic feet (Tcf) of recoverable natural gas resources in the Offshore
Area 1 Block. The separate and distinct Golfinho/Atum complex, which is
fully contained within the Offshore Area 1 Block, is estimated to hold 15
to 35 Tcf of recoverable natural gas resources. Evaluation of a third
discovery on the block, Tubarao, is ongoing with an appraisal well that
is expected to be drilled in early 2013.

    Anadarko Petroleum Corporation's mission is to deliver a competitive and
sustainable rate of return to shareholders by exploring for, acquiring
and developing oil and natural gas resources vital to the world's health
and welfare. As of year-end 2011, the company had approximately 2.54
billion barrels-equivalent of proved reserves, making it one of the
world's largest independent exploration and production companies. For
more information about Anadarko and APC Flash Feed updates, please visit

    This news release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Anadarko believes that its expectations
are based on reasonable assumptions. No assurance, however, can be given
that such expectations will prove to have been correct. A number of
factors could cause actual results to differ materially from the
projections, anticipated results or other expectations expressed in this
news release, including Anadarko's ability to drill, develop and
commercially operate the drilling prospects identified in this news
release, to continue to coordinate development activities with Eni and
reach a definitive unitization agreement, to finalize negotiations and
execute the FEED contracts identified in this news release and to
successfully plan, secure necessary governmental approvals, finance,
build and operate the necessary infrastructure and LNG park. See "Risk
Factors" in the company's 2011 Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and other public filings and press releases.
Anadarko undertakes no obligation to publicly update or revise any
forward-looking statements.

    Cautionary Note to U.S. Investors: Effective Jan. 1, 2010, the United
States Securities and Exchange Commission ("SEC") permits oil and gas
companies, in their filings with the SEC, to disclose only proved,
probable and possible reserves that meet the SEC's definitions for such
terms. Anadarko uses certain terms in this news release, such as
"recoverable natural gas resources," and similar terms that the SEC's
guidelines strictly prohibit Anadarko from including in filings with the
SEC. U.S. investors are urged to consider closely the disclosure in
Anadarko's Form 10-K for the year ended Dec. 31, 2011, File No.
001-08968, available from Anadarko at or by writing
Anadarko at: Anadarko Petroleum Corporation, 1201 Lake Robbins Drive, The
Woodlands, Texas 77380, Attn: Investor Relations. This form may also be
obtained by contacting the SEC at 1-800-SEC-0330. 

    Anadarko Petroleum Corporation
 Mozambique LNG Project
 Dec. 21, 2012

    Offshore Installation FEEDs (Offshore Area 1)
 Subject to final contract
execution, independent, competitive offshore installation FEEDs will be
performed by the following three parties:

--  Technip USA, Inc.
--  A joint venture comprised of Subsea 7 (US) LLC and Saipem SA
--  A joint venture comprised of McDermott, Inc. and Allseas USA Inc.


The offshore FEEDs will be effective immediately following contract
finalization and will focus on Area 1 subsea production systems for the
Prosperidade complex. The FEEDs will each culminate with the delivery of
a full engineering, procurement, installation and commissioning plan for
the Offshore Area 1 development. 

    Onshore LNG FEEDs (Joint Onshore Development)
 Subject to final contract
execution, independent, competitive LNG FEEDs will be performed by three
parties comprised of the following recognized LNG contractors:

--  A joint venture comprised of JGC Corporation and Fluor Transworld
    Services, Inc.
--  A joint venture comprised of an affiliated company of CB&I and
    Chiyoda Corporation
--  International Bechtel Co. LTD.


The FEEDs will develop an overall LNG park plan allowing the
capability to produce approximately 50 million tonnes of LNG per annum
(MMTPA) in future years. Each of the LNG FEEDs will deliver designs for
an initial development consisting of four liquefaction trains with
capacity of 5 MMTPA per train. The FEEDs will culminate in the delivery
of a full engineering, procurement and construction plan, and a lump-sum
turnkey price for the initial two 5-MMTPA trains, as well as associated
common facilities. Specifics regarding the second two 5-MMTPA trains will
be developed during the FEED process.

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Anadarko Contacts 

John Christiansen

Brian Cain

Christina Ramirez

John Colglazier

Wayne Rodrigs

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