As part of its expansion strategy, Total will take over Mozambique natural gas project following the acquisition of the Anadarko Petroleum Corporation group by the Occidental Petroleum Corporation group, a deal worth USD 55 Bn.
Following the deal, Total will become the operator of the USD 23 Bn Rovuma LNG Project whose construction began on August 5.
The project will be Africa’s biggest single investment and Mozambique is leveraging on the deal to transform its economy.
“I would like to reaffirm the importance of Mozambique LNG for Total, where we will become the operator,” Patrick Pouyanné, Chief Executive Officer of the Paris-based oil major said recently adding, “This is a unique asset which perfectly fits our strategy and our skills.”
The company also has plans to acquire Anadarko’s other assets in Africa including oil and gas projects in Algeria, Ghana and South Africa, strengthening its position in the continent.
Total group earlier made known it had reached a binding agreement with the Occidental Petroleum Corporation group to buy Anadarko Petroleum Corporation group’s African assets for USD 8.8 Bn.
“The transaction depends on the Occidental group buying the Anadarko group and approval by the relevant bodies, and should be completed in 2020,” indicated the statement issued earlier.
“Please be assured of the commitment of Total to bring the best of our human, technical and financial capacities to further strengthen the project execution in the interests of all those involved, including the government and people of Mozambique,” Total’s CEO said.
It is anticipated that the project is expected to create approximately 5,000 direct jobs and 45,000 indirect jobs.
Substantial natural gas deposits were discovered in Mozambique that could transform the country into a significant liquefied natural gas (LNG) exporter.
According to the Oil & Gas Journal, Mozambique holds 100 trillion cubic feet (Tcf) of proved natural gas reserves and is the third-largest holder of proved natural gas reserves in Africa behind Nigeria and Algeria.
Currently, the use of natural gas is on the rise globally as countries struggle to meet the demands and shift away from using coal.
Reports also indicate that Total Group is currently negotiating to purchase part of Tullow Oil’s stake in the Lake Albert oil project.
Featured Image Courtesy: Energy Projects Development