US oil group Anadarko has sold off 10% of its offshore Mozambique stake in a $2.64billion cash deal – as it looks to develop its American operations.
The Texas-based group will retain a 26.5% operating interest of Area 1, which is estimated to contain up to 65trillion cubic feet of gas.
The deal with Indian giant ONGC underlines the interest in the Mozambique fields for development, with huge natural resources thought to exist off the African state’s shores.
VIDEO: Mozambique energy minister Esperanca Bias on the country’s potential
“As the operator of Area 1, we are very pleased to have reached this agreement with OVL, which values our pre-transaction interest at more than $9.6 billion,” said Anadark chairman Al Walker.
“We expect to use the net proceeds from this transaction to further accelerate the short- and intermediate-term oil and liquids opportunities we have in the Wattenberg field, Eagleford Shale, Permian and Powder River basins, as well as the Gulf of Mexico and other evolving plays in our portfolio.
The deal, subject to government approval, is due to be completed by the end of 2013, and will see ONGC join Mitusi, BPRL, PTT Exploration and Videocon as partners in the site, which sits in the deepwater Rovuma Basin.
“Mozambique LNG is a premier global energy project, and we look forward to working with our partners and the government to advance this world-class development,” said Walker.
First LNG cargoes are expected from the site in 2018.