15 May 2012

Mozambique: Anadarko Announces Major New Gas Discovery

Photo: Wikipédia
Mozambique- Confluence Limpopo- Shashe.

London — The Texas-based Anadarko Petroleum Corporation on Tuesday announced that it has found a major new gas field in the Rovuma Basin off the coast of the northern Mozambican province of Cabo Delgado.

The company announced that it has discovered up to 20 trillion cubic feet of gas at the Golfinho well located just ten miles off the coast, and estimates that the Golfinho area could hold up to 45 trillion cubic feet of gas. Anadarko found more than 193 net feet (59 net metres) of natural gas pay at Golfinho.

This new discovery is in addition to the gas already found in the company's nearby Prosperidade complex, which is estimated to hold between 17 and 30 plus trillion cubic feet of recoverable natural gas.

The discovery is 32 kilometres north west of the Prosperidade complex, within Offshore Area 1, where Anadarko is the operator. The company still has three more locations to explore within Offshore Area 1: Orca, Atum and Linguado.

Bob Daniels, Anadarko's Senior Vice President for Worldwide Exploration, pointed out that "the success of the Golfinho well significantly expands the tremendous resource potential of the Offshore Area 1 in the deep-water Rovuma Basin, with additional opportunities yet to test. This new discovery is only 10 miles offshore, providing potential cost advantages for future development options".

Anadarko is the operator of Offshore Area 1 and holds a 36.5 per cent share of the fields. Its co-owners are Mitsui of Japan (20 per cent), BPRL Ventures and Videocon (both of India, with 10 per cent each) and Cove Energy of Britain (8.5 per cent). The Mozambican government is represented by Empresa Nacional de Hidrocarbonetos which holds a 15 per cent interest in the fields.

Royal Dutch Shell recently put in a bid of 1.8 billion US dollars to buy Cove Energy. That offer was based on Shell buying shares at 220 pence. However, Cove's shares jumped up in price on the announcement of the new find and are currently trading at above 228 pence per share.

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