Oxy Mozambique
Oxy completes sale of Mozambique LNG to Total for $3.9 billion
Occidental Completes Sale of Anadarko’s Mozambique LNG Stake to Total Seven Weeks After Closing the Anadarko Transaction
Occidental Petroleum Corporation (“Occidental” or “the Company”) (NYSE: OXY) today provided an update on its divestiture and deleveraging initiatives following the recent close of its acquisition of Anadarko Petroleum (“Anadarko”) on August 8, 2019.
Occidental’s progress includes:
Sale of Anadarko’s Mozambique LNG Stake to Total: Occidental has completed the sale of Anadarko’s Mozambique LNG stake to Total S. A. (“Total”) (NYSE: TOT), for $3. 9 billion. As previously announced, Occidental entered into a binding agreement to sell Anadarko’s African assets to Total for $8. 8 billion. Following the completion of the Mozambique transaction, Occidental and Total continue to work towards closing the remaining Africa transactions in Algeria, Ghana and South Africa pursuant to the definitive agreement signed in August 2019.
Sale of the Plains Stake: Occidental completed the sale of its holdings in Plains All American Pipeline, L. P. (NYSE: PAA) and Plains GP Holdings, L. (NYSE: PAGP) (“Plains”) for $650 million.
Ecopetrol Joint Venture: In conjunction with Occidental’s second quarter 2019 earnings, Occidental announced a strategic partnership with Ecopetrol to develop Midland Basin acreage for $750 million in cash plus $750 million in carried capital. The transaction is expected to close before year end.
Occidental remains on track to deliver $10 to $15 billion of planned asset sales and remains confident in its deleveraging strategy. Occidental will continue to take actions to drive value for all of the Company’s stakeholders.
“We have made progress quickly on our post-acquisition divestiture and deleveraging goals and remain confident in our ability to realize the full value of the Anadarko acquisition for our shareholders, ” stated Vicki Hollub, President and Chief Executive Officer. “Upon completion of our recent initiatives, we will have reached approximately $10 billion of our targeted divestitures with more to follow. ”
Legal Notice
Oxy closes Mozambique LNG sale to Total for $3.9B – Houston …
Sep. 30, 2019Updated: Sep. 30, 2019 11:05 a. m.
1of27Occidental Petroleum completed its acquisition of Anadarko Petroleum. >> Keep clicking through to see photos of celebrities protesting pipeline and oil Saxon, STF / Associated Press
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Occidental Petroleum said Monday it closed on the sale of the crown jewel project from its Africa assets for $3. 9 billion to the French energy major Total.
The completed sale is part of the ongoing overall sale of the Africa assets to Total, keeping Houston-based Oxy on track for its divestiture goal after buying The Woodlands-based Anadarko Petroleum for $38 billion.
To help finance the massive Anadarko deal, Oxy previously agreed to sell Anadarko’s Africa assets to Total for $8. 8 billion, including the Mozambique liquefied natural gas export project. With the Mozambique sale now complete, Oxy said it is working toward closing the remaining Africa transactions in Algeria, Ghana and South Africa.
RELATED: After Anadarko merger, difficult decisions ahead for Oxy
With two other smaller deals in the works, Oxy already has agreed to more than $10 billion in divestitures, meeting the goal of $10 billion to $15 billion in sales after the Anadarko deal. Oxy Chief Executive Vicki Hollub pledged that Oxy isn’t stopping there though.
“We have made progress quickly on our post-acquisition divestiture and deleveraging goals and remain confident in our ability to realize the full value of the Anadarko acquisition for our shareholders, ” Hollub said. “Upon completion of our recent initiatives, we will have reached approximately $10 billion of our targeted divestitures with more to follow. ”
Oxy already is facing the wrath of many of its shareholders, including a proxy war by famed corporate raider Carl Icahn, for allegedly over-extending itself and overpaying for Anadarko, so there’s pressure on Oxy to meet and exceed all of its goals.
With the Anadarko acquisition, Oxy solidified its standing as the top producer in the booming Permian Basin.
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Oxy could still sell much of its ownership stake in the pipeline firm Western Midstream Partners, while Oxy also could unload some of Anadarko’s assets in the Gulf of Mexico or in Colorado.
Just recently, Oxy agreed to sell its remaining stake in the Houston pipeline firm Plains All American Pipeline for $650 million and, previously, Oxy and the Colombian state oil firm Ecopetrol agreed to a Permian joint venture that would pay Oxy $750 million up front with another $750 million in investments to come.
Oxy also plans to sell the former headquarters of ConocoPhillips that Oxy bought in Houston’s Energy Corridor prior to the Anadarko deal. Oxy is delaying for now any long-term decision on its corporate headquarters, splitting activities between its current Houston headquarters in Greenway Plaza and the Anadarko headquarters in The Woodlands.
Mozambique LNG Project, Cabo Delgado, Mozambique – NS Energy
Mozambique Rovuma Offshore Area 1 development partners
Total holds 26. 5% interest in the Rovuma Area 1 exploration and production concession. The other licensees are ENH Rovuma Área Um (15%), Mitsui E&P Mozambique Area1 (20%), ONGC Videsh (10%), Beas Rovuma Energy Mozambique (10%), Bharat Petroresources Limited (BPRL) Ventures Mozambique (10%), and PTTEP Mozambique Area 1 (8. 5%).
Anadarko Petroleum (now Occidental Petroleum) was previously the operator of the project. Total acquired Anadarko’s 26. 5% operated interest in the Rovuma LNG project for £3. 1bn ($3. 9bn) in September 2019.
Beas Rovuma Energy Mozambique (BREM) is a joint venture between ONGC Videsh (60%) and Oil India Limited (OIL, 40%), while BPRL is a wholly-owned subsidiary of Bharat Petroleum, another state-controlled oil and gas company of India.
Mozambique LNG development history
The environmental impact assessment (EIA) for the Area 1 Mozambique LNG project was carried out between 2011 and 2014.
The Mozambican Ministry of Coordination of Environmental Affairs (MICOA) approved the EIA report in June 2014, while the concessions to design, build and operate the marine facilities for the project were secured from the Government of Mozambique in July 2017.
The Government of Mozambique gave the final approval for the Area 1 Mozambique LNG development plan in March 2018.
Area 1 Mozambique LNG project location and site details
The Golfinho and Atum gas fields are located in 1, 600m-deep waters within the Rovuma Basin Area 1, approximately 40km off the coast of Cabo Delgado. The Offshore Area-1 is estimated to contain 75 trillion cubic feet (tcf) of recoverable natural gas resources.
The LNG processing and export facility will be developed in the Afungi peninsula in Cabo Delgado, the northernmost province of Mozambique.
Mozambique LNG facility details
The Area 1 Mozambique LNG facility will consist of two liquefaction trains with a combined nameplate capacity of 12. 88Mtpa in the initial phase. It will also house gas pre-treatment facilities and full-containment LNG storage tanks. The LNG production capacity of the facility is proposed to be further expanded up to 50Mtpa in future.
The plant will receive feed gas supply from the Golfinho-Atum gas field through pipeline and produce LNG for export to the Asian and European markets, as well as for domestic consumption in Mozambique.
Other support facilities for the LNG plant will include materials offloading facility and an LNG marine terminal capable of accommodating large LNG carriers, which will also be shared with upcoming Area 4 LNG projects.
LNG off-take
The Area 1 Mozambique LNG project is backed with 11. 1Mtpa of long-term LNG off-take agreements.
The customers for the project include Electricite de France (EDF, 1. 2Mtpa), Japan’s JERA and Taiwan’s CPC Corporation (1. 6Mtpa), CNOOC Gas and Power Singapore (1. 5Mtpa), Tokyo Gas and Centrica (2. 6Mtpa), Shell International Trading Middle East (2Mtpa), Bharat Petroleum Corporation (1Mtpa), and Indonesia’s Pertamina (1Mtpa).
Previous operator Andarko also signed a memorandum of understanding (MoU) with the Government of Mozambique in December 2015, to provide 100 million cubic feet of gas a day (Mmcfd) from the facility for domestic consumption.
Contractors involved in the Mozambique LNG facility
A consortium of McDermott, Chiyoda Corporation, and Saipem is responsible for the engineering, procurement, and construction (EPC) of the onshore liquefaction plant along with its support facilities.
Consortium leader Saipem’s share of the EPC contract awarded in June 2019 is worth £4. 7bn ($6bn), while that of McDermott is valued at £1. 5bn ($2bn).
The joint venture of CB&I (now McDermott), Chiyoda and Saipem (CCS JV) also provided the front-end engineering and design (FEED) for the LNG facility.
Worley, a global engineering company based in Australia, was contracted by Total to provide engineering and consulting services for the delivery of onshore as well as subsea facilities for the Mozambique LNG project in February 2020.
Subsea contractors and suppliers
TechnipFMC, in consortium with Van Oord, is the engineering, procurement, construction, and installation (EPCI) contractor for the offshore subsea system for the project. Allseas will be engaged as a major subcontractor for the offshore installation works.
TechnipFMC will also provide subsea trees, subsea controls systems, production manifolds, subsea connectors, as well as completion workover riser & installation workover control system for the subsea gathering system, through its subsidiary FMC Technologies.
Oceaneering International is the supplier of subsea umbilicals and distribution hardware, while Advanced Technology Valve will provide pipeline subsea ball and subsea gate valves.
Cameron Italy will supply the subsea chemical injection metering valves for the Area 1 Mozambique LNG project.
Frequently Asked Questions about oxy mozambique
Who owns Mozambique LNG?
French oil and gas company Total holds a majority stake in the Mozambique Rovuma Offshore Area 1 development consortium and is the operator of the project. The final investment decision (FID) on the Mozambique LNG project, which is estimated to cost approximately £15.5bn ($20bn), was taken in June 2019.
Who bought Occidental?
Billionaire Carl Icahn sold $180 million worth of Occidental Petroleum shares this week – MarketWatch.Apr 8, 2021
How many acres does oxy have in the Permian?
With approximately 1.35 million unconventional net acres in the Permian Basin at the end of 2018, Permian Resources is focused on developing and growing inventories in the Wolfcamp and Bone Springs formations in the Delaware Basin, as well as the Spraberry and Wolfcamp formations in the Midland Basin.
