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Anadarko uprates Mozambique gas reserves and LNG capacity

Having raised its gas-resource estimate for Mozambique’s Area 1, the northernmost offshore block, Anadarko is targeting exports through a 10 million tonnes a year liquefied natural gas (LNG) plant

ANADARKO, the US independent, is mobilising a second drillship into Mozambique's Area 1 and is planning well-tests and the drilling of up to seven exploration and appraisal wells over the coming year.

Resources in the Windjammer, Barquentine, Lagosta and Camarão cluster of discoveries amount to at least 10 trillion cubic feet (283 billion cubic metres) of recoverable gas, the company said in early October, after making the Camarão discovery. The Camarão-1 well passed through 73 metres of gas reservoir, showing pressure-connectivity with the Windjammer and Lagosta discoveries, and also discovered 43 metres of new reservoir, not encountered at the earlier finds.

The Camarão well, in 1,442 metres of water, was drilled approximately midway between the Windjammer and Barquentine discoveries to the north and the Lagosta discovery to the south, confirming a reservoir extending about 40 km north-to-south. Anadarko has also discovered gas in a separate structure, Tubarão, further south. The company said it is optimistic its resource estimate will increase further because there is significant exploration and appraisal work still to do. Two new 3-D seismic surveys are being evaluated. The firm is now drilling the Barquentine-3 appraisal well.

The planned two-train LNG complex, described as base-case, is envisaged as expanding with additional trains built as exploration work continues and new reserves are proved. Infrastructure constructed for the first two trains will allow future trains to be added at reduced cost. In August, Anadarko awarded a contract for pre-front-end engineering and design work for the complex to KBR and Technip.

Anadarko holds 36.5% of the Area 1 licence, joined by Mitsui, 20.0%, BPRL (part of India’s Bharat Petroleum), 10.0%, India’s Videocon, 10.0%, Cove Energy, 8.5%, and the state’s Empresa Nacional de Hidrocarbonetos, 15.0%. Cove, a small UK company, said the LNG project is planned to be ready for a final investment decision in third-quarter 2013.

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