French multinational integrated oil and gas company, Total, has acquired Anadarko’s 26.5 percent operated interest in the Mozambique LNG project for $3.9 billion after signing the subsequent Purchase and Sale Agreement in August. This acquisition follows receipt of all requisite approvals by the relevant authorities and partners.

In May, the energy company announced that it had reached a binding agreement with Occidental to acquire Anadarko assets in Africa. The assets include its liquefied natural gas projects in Mozambique as well as its oil developments in Algeria, Ghana, and South Africa, representing 1.2 billion barrels of oil equivalent (boe) of 2P reserves, of which 70 percent is gas, plus 2 billion boe of long term natural gas resources in Mozambique.

Totals interest in Anadarko peaked after Occidentals announcement to sell off a large number of Anadarko investments across Africa. With that, Total hopes to dominate the oil field straddling Texas and New Mexico that is the biggest and most productive in the United States. Currently, the Mozambique LNG project is largely derisked as almost 90 percent of the production has been sold through long-term contracts with key LNG buyers in Asia and in Europe.

According to Total, “Mozambique LNG is one of a kind asset that perfectly fits with our strategy and expands our position in liquefied natural gas”, said Patrick Pouyanné, Chairman & CEO of Total. “As the new operator, we are fully committed to the Mozambique LNG project and we will bring the best of our human, technical, marketing and financial capacities to further strengthen its execution. Total will of course work on the strong foundations established by the previous operator and its partners, in order to implement the project in the best interest of all those involved, including the government and the people of Mozambique.”


Mozambique LNG is the country’s first onshore LNG development and although the project will cost Total as much as $23 billion to develop, it will be Africa’s biggest single investment. The project includes the development of the Golfinho and Atum fields located within Offshore Area 1 and the construction of a two-trains liquefaction plant with a capacity of 12.9 million tonnes per year (Mt/y). The Area 1 contains more than 60 Tcf of gas resources, of which 18 Tcf will be developed with the first two trains.

The acquisition of Anadarko is not Total’s first presence in Mozambique. The company operates a 26.5 percent participating interest alongside ENH Rovuma Área Um, S.A. (15 percent), Mitsui E&P Mozambique Area1 Ltd. (20 percent), ONGC Videsh Ltd. (10percent), Beas Rovuma Energy Mozambique Limited (10percent), BPRL Ventures Mozambique B.V. (10 percent), and PTTEP Mozambique Area 1 Limited (8.5 percent) in Mozambique LNG.

Mozambique is counting on Total and its project to transform the economy. The southeastern country is one of the world’s poorest, and needs resources to adapt to extreme weather after two powerful cyclones in the same season this year.

The project is expected to come into production by 2024.