Anadarko Selects CB&I-led Consortium for Onshore Mozambique LNG Development

Source: Anadarko

HOUSTON - May 18, 2015 - Anadarko Petroleum Corporation (NYSE: APC) on behalf of the co-venturers in Mozambique’s Offshore Area 1, and after a competitive FEED (front-end engineering and design) process, today announced the selection of a consortium consisting of CB&I, Chiyoda Corporation and Saipem (CCS JV) for the initial development of the onshore LNG park in Mozambique .

Selecting CCS JV for the development of the onshore Mozambique LNG park is a significant step toward reaching FID (Final Investment Decision) and demonstrates our continued commitment to advancing this important project toward first cargoes,” said Anadarko Chairman, President and CEO, Al Walker . “I am incredibly proud of our co-venture for all of the accomplishments achieved to date, including securing more than 8 million tonnes per annum (MMTPA) in non-binding long-term off-take agreements, which are now progressing toward binding SPAs (Sales and Purchase Agreements), obtaining letters of intent from lenders for project financing at a very material level, and working with the newly elected Government to keep the project moving forward. We also congratulate the contractor group, CCS JV, on its selection, and look forward to working with the Offshore Area 1 co-venturers to submit a Plan of Development in the coming months for the Government’s consideration.”

The scope of the work for the onshore LNG park includes two LNG trains, each with capacity of 6 MMTPA, which is an increase of 1 MMTPA per train over the original plan, while maintaining an estimated cost that is consistent with the co-venturers’ original projections. The scope also includes two LNG storage tanks, each with capacity of 180,000 cubic meters, condensate storage, multi-berth marine jetty and associated utilities and infrastructure. The selection of CCS JV is subject to negotiation and entry into a definitive agreement prior to taking FID.

Anadarko operates the Offshore Area 1 with a 26.5-percent working interest. Co-venturers include Empresa Nacional de Hidrocarbonetos E.P.(ENH) (15 percent), Mitsui E&P Mozambique Area1 Ltd. (20 percent), ONGC Videsh Ltd. (16 percent), Bharat PetroResources Ltd. (10 percent), PTT Exploration & Production Plc (8.5 percent), and Oil India Ltd. (4 percent).

Pembaland Partner Quoted in Wall Street Journal

Source: Wall Street Journal

PALMA - April 16, 2014 - When Enrique Nieto arrived here in the searing heat eight months ago, there was one communal water tap and no paved roads. Now the Spanish businessman is about to open the village’s first hotel.

The reason: natural gas.

In 2010, Texas-based energy company Anadarko Petroleum found one of the world’s largest untapped gas reserves off the coast of this tiny town. What the area didn’t have were hotels—or much of anything else. On his first visit, Mr. Nieto stayed in a home that had a hole in the ground for a toilet.

And yet an estimated 10,000 workers and executives soon will be moving to Palma, the country’s future gas capital that currently boasts a population of a few thousand people. Many of the arriving workers will be employed by contractors connected to the oil companies and housed in makeshift camps. Others will need a place to stay.

Enter the company Mr. Nieto works for, Nexar Group. The Spain-based developer, which is spending about $1 million to build its hotel named Karibu Residence 1, is betting it can charge hundreds of dollars a night to those who want air conditioning, wireless Internet access and other business-class amenities in a remote African village.

Nexar isn’t the only one making that wager.

African Century, an investment firm co-founded by the former chief executive of Morgan Stanley International, Jonathan Chenevix-Trench, is spending $2 million in Palma to build an industrial park, hotel and serviced apartments. In Pemba, a nearby town, property developer Pembaland plans to spend $6 million to build apartments. And retail chain Carlson Rezidor Hotel Group, with headquarters in the U.S. and Belgium, is considering adding more hotels in Pemba. Its local partner, Rani Resorts, currently operates one of the city’s most expensive hotels, charging $300 a night.

The moves afoot in rural Mozambique reflect the rush to build up the hotel industry in Africa, as businesspeople arrive seeking similar accommodation that they may find in Asia or Europe. The number of hotel rooms in sub-Saharan Africa should rise by about 28% in 2014 from last year, says Nigeria-based hotel consultancy W Hospitality Group.

Major players including Marriott International Inc., Starwood Hotels & Resorts Worldwide Inc. and Hilton Worldwide Inc. are planning to expand on the continent. Marriott earlier this year bought Protea Hospitality Holdings Ltd. of South Africa, one of Africa’s largest hotel companies, for more than $200 million.

While big companies aren’t going to remote places like Palma, those that are say the benefit of being among the first to arrive is high. Nexar predicts it will take less than four years to make back its investment. Pembaland’s Brian O’Donohue says real-estate companies building now can get annual returns in the 15%-to-20% range.

Yet risks are high, especially for remote markets like Mozambique. In December, Brazilian infrastructure company Zagope Construcoes e Engenharia SA completed the first tarred road into Palma, connecting the village to Pemba, the nearest large city at about 225 miles away.

But the country has a lot of infrastructure to build to get its gas sector pumping and if that doesn’t happen the energy boom could fizzle, along with the demand for hotel rooms.

Also, developers say the costs of investing in remote markets like Palma are higher than they are in the U.S. and Europe. “You will need generators, your own water and sewage plants. You really need to do it all yourself,” Mr. O’Donohue says.

To build its hotel in Palma, Nexar Group had to import nearly everything to the quiet fishing village whose dusty streets are filled with chickens and goats.

Goods took two months to arrive from Spain by boat and then it was a 500-mile trip by road to reach the site.

Material costs were high. “If one bolt wasn’t in the container that arrived, you were lost,” Mr. Nieto said as he observed the hotel construction site next to his green SUV, which he needs to navigate the dirt roads that still dominate the area.

Mozambique’s gas-boom towns aren’t unique. Property markets in energy boomtowns in remote regions like Aberdeen, Scotland, and Fort McMurray, Canada, also are getting big boosts from the influx in workers. In Africa, some of the most expensive cities are those experiencing an energy-production boom, including Luanda in Angola and Lagos in Nigeria.

Nexar hopes Palma’s turn is coming. The company is seeking a long-term contract with one of the big energy companies for rooms in Karibu Residence, which is still under construction and nearing completion.

Signs of new economic activity also are showing up in other places. The first bank and ATM in Palma opened at the end of 2013 and small shops have popped up along the road to sell toilet paper and cheap flip-flops to the growing population.

Yusufoo Musa, a 30-year-old welder in Palma, works down the road from Nexar’s building site. He says all the new building has spurred more business for his cement block molds.

The gas will be the source of changing Palma,” Mr. Musa said from his roadside workshop.

Pembaland on Who’s Who of African Intelligence

MAPUTO - September 14, 2013 - Africa Intelligence, which publishes intelligence reports on African energy sectors and geographic areas, published today in their “Who’s Who” list in the Indian Ocean Newsletter for Mozambique, with an article on Pembaland Managing Partner, Gabriel Fossati-Bellani.

The article that can be viewed here, and it cites the recent developments in property companies of Pembaland and recounts the services offered by Mr. Fossati-Bellani’s companies in Mozambique, including Pembaland and its subsidiary companies.

Pembaland is proud to have been acknowledged in this list of important stakeholders in Mozambique. Striving for excellence in services and sustainability is at the forefront of Pembaland’s mission.

Afungi Environmental Impact Assessment - Public Consultation

MAPUTO - September 10, 2013 - Impacto and ERM - Environmental Resource Management, the two companies that have been, since 2011 conducting the Environmental Impact Assessment for the LNG development in Afungi, Palma District, have begun their public consultations. The two companies began yesterday in Maputo public consultations and have published non-technical reports of the EIA on behalf of their main clients for the Afungi LNG development, Anadarko Petroleum, ENH & ENI.

On September 11, the consultations will continue in Palma and on September 12 in Pemba. The public consultation is an integral part of the EIA process, as the report is in a draft format. The EIA has been ongoing since 2011 and cover onshore, nearshore and offshore environmental habitats, challenges and concerns.

The following links provide access to the public consultation invitations as well as the documents that have been shared as part of the public consultations.

Invitation for Public Consultations: Journal Noticias
EIA Documents in English: ERM
EIA Documents in Portugues: Impacto

From the ERM website:

Mozambique are among the world’s most significant discoveries in the last 20 years. Anadarko Moçambique Área 1, Lda (AMA1) holds rights to explore and develop natural gas reserves in Area 1 in the Rovuma Basin and Eni East Africa S.p.A (eni) holds similar rights to explore and develop in Area 4. These areas are adjacent to one another and a number of gas reservoirs or gas fields have been discovered within each area. AMA1 and eni are the Project proponents, working together to develop a Liquefied Natural Gas (LNG) Facility and associated infrastructure to convert the natural gas to a liquid state and export it to international markets.

The Project is required to obtain permission (in the form of an environmental licence(s) from the Government of Mozambique) before AMA1 and eni can construct and operate the facilities. An Environmental Impact Assessment (EIA) Report has therefore been developed to inform the Government’s decision making process. The EIA Report documents the process undertaken for identifying, assessing, mitigating and managing the biological, physical and socio -economic impacts of the Project. ”

Anadarko Announces $2.64 Billion All-Cash Transaction for Portion of Offshore Mozambique Block

Source: Anadarko

HOUSTON, TX, August 26, 2013 - Anadarko Petroleum Corporation (NYSE: APC) today announced it has entered into a definitive agreement with ONGC Videsh Ltd. (OVL), a wholly owned subsidiary of Oil and Natural Gas Corporation Limited, to sell a 10-percent interest in Mozambique’s Offshore Area 1 (Area 1) for $2.64 billion in cash. Anadarko will remain the operator of Area 1 with a working interest of 26.5 percent.

This transaction demonstrates our continuing ability to create substantial value through exploration and to again accelerate the value of our longer-dated projects through attractive monetizations and third-party capital,” Anadarko Chairman, President and CEO Al Walker said. “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.

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. 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. Our objective with this allocation of capital will be to further increase our cash-flow growth with attractive wellhead margins, while providing additional value to our shareholders as evidenced by our recent dividend increase and continued portfolio-management activities.”

The transaction is expected to close around the end of 2013, and is subject to existing preferential rights, governmental approvals and other customary closing conditions.

Area 1 is operated by Anadarko Moçambique Area 1 Limitada (a wholly owned indirect subsidiary of Anadarko) and is located in Mozambique’s deepwater Rovuma Basin. The block contains the Prosperidade and Golfinho/Atum natural gas complexes that combined hold an estimated 35 to 65-plus trillion cubic feet (Tcf) of recoverable natural gas resources. In cooperation with the Government of Mozambique, Anadarko, its partners, and Eni (as the operator of the adjacent Area 4 block) continue to advance the development of an LNG park with first LNG cargoes expected in 2018.

Anadarko’s partners in Area 1 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, E.P.’s (ENH) 15-percent interest is carried through the exploration phase.

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 2012, the company had approximately 2.56 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