Anadarko plans JV for Mozambique asset

29 November 2012, Sweetcrude, Maputo – Anadarko Petroleum Corporation is considering a joint venture to monetise up to a third of its interests in Mozambique, according to Dow Jones Newswires.

John Colglazier, Anadarko’s vice president for investor relations, told analysts at a conference that a joint venture would help the company share the costs of developing its massive gas discovery off the coast of Mozambique.

“It’s a pretty significant piece of the portfolio for something that’s not producing,” Mr. Colglazier said. “We’ve said we’d consider monetizing up to a third of our interest…to help us out and probably minimize portfolio risk.”

Large natural-gas discoveries off the coasts of Mozambique, Tanzania and Kenya have transformed East Africa into one of the world’s most promising energy provinces and attracted attention from oil and gas companies that want to buy their way into the discovery.

Earlier this year, Shell tried to access Mozambique gas by attempting to acquire Cove Energy PLC, which had a stake in the offshore Mozambique gas field, but was outbid by Thailand’s PTT Exploration and Production PC.

Mr. Colglazier said there are an estimated 35 trillion to 65 trillion cubic feet of recoverable natural gas in the offshore fields of Mozambique, and there is more potential for discovery. The company anticipates it will begin selling gas from the area in 2018.

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