Chevron-Anadarko: the overlooked jewel

As Chevron swallows up its USD50 billion acquisition of Anadarko, OGInsights turns its focus away form the heavily covered synergies in the Permian, DJ Basin and Gulf of Mexico, and towards its LNG portfolio as Chevron strives to join the ranks of the supermajors in LNG. Chevron has a Australasia-centric LNG business, but Anadarko's 27% operated interest in Mozambique Area 1 now broadens the former's reach. The Mozambique position is a low...

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Understanding Mozambique's fiscal regime (Part I)

Government take across countries in East Africa are generally below the Sub Saharan Africa average of 62%. This reflects the relative infancy of the E&P industry in the region with high exploration risk and uncertainties on the path to commericialising discovered resources. A lower fiscal take is required to attract investment. Mozambique’s government take lies in the middle of its East African neighbours - lower than Uganda where significant...

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Anadarko signs SPAs for Mozambique LNG

Anadarko has signed three gas Sale and Purchase Agreements (“SPAs”) with Tokyo Gas/Centrica (2.6mtpa), Shell (2mtpa) and CNOOC (1.5mtpa) for its Mozambique LNG Area 1 development. This total 6.1mtpa of the planned 12.88mtpa ahead of FID expected in mid-2019. The LNG development will challenge upcoming projects given its fortunate location in between the Asian and European markets and will compete with Australian, Middle Eastern and North American...

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Anadarko close to Mozambique Area 1 FID and raising USD12 billion debt financing

On 26th April, Anadarko had "in principle" secured sufficient offtake to enable FID of the first phase of Mozambique LNG on Area 1 offshore Mozambique. The huge resource of 75 tcf is planned to be initially developed via two trains with capacity of 12.88 mtpa. In time, this could eventually be expanded to eight trains producing 50 mtpa. Since the announcement, Anadarko has also made clear that it expects to debt finance ~USD12 billion of the...

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Mozambique LNG moves one step closer to FID

On 31st July, Anadarko finalised two agreements with the Mozambique government (the marine concessions) which pave the way for FID of the LNG project. The agreements would allow Anadarko as operator to progress with the design, building and operation of the marine facilities for the project and could see FID in 2018. The next step is to begin with resettlement plans, the completion of which would allow construction to commence. Separately,...

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