Anadarko ‘mulls Mozambique stake sale’

20 April 2015, News Wires – US independent Anadarko Petroleum is mulling a sale of its multi-billion dollar stake in Mozambique’s giant gas reserves, with ExxonMobil and Qatar Petroleum both named as potential buyers, according to a report.

Anadarkos-Net-Income-DecresesExxonMobil is seen as the front-runner, Reuters reported. Eyes have been on the US supermajor in anticipation of a move that compares with rival Shell’s $70 billion purchase of UK-listed BG Group last week.

Anadarko, which has reportedly opened its data rooms, could sell up to its full 26.5% stake in Mozambique’s offshore Area 1 license in the Rovuma basin, Reuters reported.

The last stake sold, a 10% chunk that went to India’s Oil & Natural Gas Corporation, went for $2.64 billion in 2013, but that was seen as overpriced at the time and came before the latest drop in commodity prices.

Area 1 holds over 75 trillion cubic feet of recoverable gas, enough to meet over four years of total European gas demand.

Anadarko initially planned to build a major liquefied natural gas export project in Mozambique fed by Area 1 reserves.

ExxonMobil, which operates a diverse LNG portfolio, has come to the fore of possible suitors after Shell dropped out following its merger with BG, a banking source told Reuters.

None of the companies mentioned chose to comment to Reuters.


– Reuter

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