Anadarko Narrows Loss
Posted on 01/11/2017
Woodlands-based Anadarko, the developer of the giant Mozambique LNG project, reported a net loss of $699 million for the third quarter of 2017.
Compared to the corresponding quarter in 2016, the loss narrowed from $830 million, Anadarko’s third-quarter report shows.
Anadarko’s third-quarter sales volume totaled 58 million barrels of oil equivalent (BOE), or an average of 626,000 BOE per day.
Reporting on the progress of its Mozambique LNG project, the company noted it is “continuing to generate substantial momentum” following the signing of marine concession agreements with the Government of Mozambique during the quarter.
These agreements marked the completion of the foundational legal and contractual framework.
Anadarko added that, subsequent to the quarter end, the company reached a 20-year sales and purchase agreement for 2.6 million tons of LNG per year with Thailand’s PTT.
The company’s first long-term deal for the project has been approved by PTT’s board and is currently pending approval by the Thai government, Anadarko said.
The 2.6 mtpa deal was the first among over 8 mtpa non-binding offtake deals to advance.
Anadarko and its partners have discovered more than 75 Tcf of natural gas resources in the Prosperidade and Golfinho/Atum complexes in Mozambique’s Offshore Area 1, which will be used to feed an onshore LNG terminal on the Afungi peninsula in Cabo Delgado province.
The discovered reserves in Mozambique are sufficient to support two initial LNG trains, each with a capacity of 6 million tonnes per annum, as well as to accommodate expansions, including additional trains capable of producing about 50 million tonnes of LNG per year.