The state-owned PTT group, formerly known as the Petroleum Authority of Thailand, has signed an agreement to buy 2.6 million tonnes of natural gas per year to be extracted by US group Anadarko Petroleum in Area 1 of the Rovuma basin, northern Mozambique.
Anadarko Petroleum is the operator of the Area 1 block with a 26.5% stake, the remaining partners being Mozambican state-owned Empresa Nacional de Hidrocarbonetos (15%), Mitsui E&P Mozambique Area 1 Ltd. (20%), ONGC Videsh Ltd. (16%), Bharat PetroResources Ltd. (10%), PTT Exploration & Production Plc (8.5%) and Oil India Ltd. (4.0%). PTT Exploration & Production Plc, a subsidiary of Thai group PTT, acquired the 8.5% stake held by Ireland’s Cove Energy, by acquiring the entire share capital of this company for US$1.9 billion.
Partners in the Area 1 block are expected to make a final investment decision by the end of 2017 so that the start of natural gas extraction can begin between 2022 and 2023. Covering approximately 2.6 million acres, Offshore Area 1 is located within the Rovuma Basin, approximately 40km offshore northern Mozambique. The water depth in the area is roughly 1,600m. The area hosts the Prosperidade and Golfinho/Atum complexes, which further host several deepwater discoveries, including Windjammer, Barquentine, Lagosta, Camarao, Golfinho, Orca, and Atum.
The offshore fields are being developed as part of the larger Mozambique LNG Project, which also includes the construction of an LNG park within the Cabo Delgado Province of northern Mozambique. The project aims at initially supplying approximately 100 million cubic feet of natural gas a day (MMcfd) to the onshore LNG facility. It is expected to generate approximately between 400 and 700 jobs during the construction phase