Total acquires Mozambique LNG stake for $5.8bn

Total has acquired Anadarko Petroleum’s 26.5 per cent stake in the Mozambique liquified natural gas (LNG) project for $US3.9 billion ($5.8 billion).

Mozambique LNG is the African country’s first onshore LNG development with a capacity of 12.9 million tonnes per year.

Total believes the Mozambique LNG project is largely derisked as almost 90 per cent of production is already sold through long-term contracts with key LNG buyers in Asia and Europe.

The project is also expected to have a domestic gas component for in-country consumption to help fuel future economic development. Total will become the new operator of the project.

Total chairman and chief executive officer Patrick Pouyanné said the company would fully commit to the Mozambique LNG project to further strengthen its execution.

“Mozambique LNG is a one of a kind asset that perfectly fits with our strategy and expands our position in liquefied natural gas,” Pouyanné said.

“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.”

Total senior vice president gas Laurent Vivier said the acquisition added an important new element to Total’s LNG portfolio due to its location and flexibility to ship cargoes to both Europe and Asia. RBR Group will provide skilled labour to the project.

RBR chief executive Richard Carcenac said the project would benefit from renewed focus from an experienced operator.

“In our opinion, this acquisition, together with the fact that much of the production has already been sold for delivery commencing in 2024, is likely to result in an acceleration of the on-shore construction activities,” Carcenac said.

“We also believe that Total and its engineering, procurement and construction contractor consortium will look to outsource a larger proportion of the project development activities to subcontractors, which aligns well with RBR’s strategy on training and the provision of skilled workers to the project.”

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