French oil major, Total, says it has completed the acquisition of Anadarko’s 26.5 per cent stake in Mozambique’s Liquefied Natural Gas (LNG) project for $3.9 billion.
Total Chairman and Chief Executive Officer, Patrick Pouyanne, said in Paris that it acquired the stake because “Mozambique LNG is a one of a kind asset that perfectly fits with our strategy and expands our position in liquefied natural gas.”
Pouyanne said that nearly 90 per cent of the Mozambique LNG production had already been sold through long-term contracts with key LNG buyers in Asia and in Europe.
The project is expected to come into production by 2024.
Anadarko led a liquefied natural gas project in Mozambique, but was replaced by Total after the French oil major agreed to buy Anadarko’s African assets for $8.8 billion as part of the takeover.
Total will be the main operator of Mozambique LNG with a stake of 26.5 per cent.
Other operators are ENH Rovuma Área Um, S.A. will own 15 per cent, Mitsui E&P Mozambique Area1 Ltd will hold 20 per cent, ONGC Videsh Ltd, Beas Rovuma Energy Mozambique Limited and BPRL Ventures Mozambique B.V. will all each have 10 per cent, while PTTEP Mozambique Area 1 Limited will have 8.5 per cent.
The Mozambique Government is targeting $880 million in capital gains tax from the takeover of Anadarko Petroleum.
Mozambique’s economy has been hobbled by a debt scandal in recent years which prompted donors to cut off funding and deterred investors.
The southern African nation is banking on its massive natural gas reserves to lift millions out of poverty.