Bloomberg News

Anadarko’s Mozambique Fields May Hold More Gas Than the U.K.

October 05, 2011

(Closes share price in fifth paragraph.)

Oct. 5 (Bloomberg) -- Anadarko Petroleum Corp., the largest U.S. independent oil and natural gas company by market value, raised estimates of reserves at its offshore Mozambique fields after appraising the Camarao prospect.

The cumulative results of exploration have “substantially increased” the prospects of Offshore Area 1 of the deepwater Rovuma Basin, it said in a statement. The company is confident the Windjammer, Barquentine, Lagosta and Camarao complex holds at least 10 trillion cubic feet of gas. That would be more than the proven reserves of the U.K., according to BP Plc data.

“Our successful drilling program offshore Mozambique continues to expand the already world-class resource potential of this frontier basin,” Vice President Bob Daniels said in the statement. “We are optimistic that our current resource estimates will increase, as we still have significant exploration and appraisal work ahead of us.”

Anadarko hired Technip SA and KBR Inc. in August to design a liquefied natural gas plant in Mozambique after appraising reserves in the Rovuma Basin. The partners, including Mitsui & Co. and Cove Energy Plc, may build as many as six trains, or LNG production units.

Cove said last year it would sell its 8.5 percent stake in the exploration venture to avoid development costs. Its shares jumped 11 percent to 74 pence in London.

Cove “will face challenges monetizing its stake offshore Mozambique given its minority interest,” Phil Corbett, an analyst at Royal Bank of Scotland Group Plc, wrote in an e- mailed report.

East Africa may hold 40 trillion cubic feet of potential gas resources, according to estimates by Wood Mackenzie Consultants Ltd. and Deutsche Bank AG.

--Editors: Tony Barrett, Stephen Cunningham.

To contact the reporter on this story: Brian Swint in London at bswint@bloomberg.net Eduard Gismatullin in London at egismatullin@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net


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