Houston-based oil and gas independent Anadarko Petroleum Corp., which agreed to a unsolicited $38 billion takeover bid from rival Occidental Petroleum Corp. last month, plans to spearhead the largest U.S. source investment on the African continent in a deal strongly backed by the Trump administration.
On Tuesday (June 18), U.S. Deputy Secretary of Commerce Karen Dunn Kelley led an overseas delegation of U.S. government officials to witness the historic $20 billion signing ceremony by Anadarko and the government of Mozambique to construct a Liquified Natural Gas (LNG) terminal just off the coast of the southeast African nation.
The Anadarko-led LNG project will be Mozambique’s first onshore LNG development, initially consisting of two LNG trains with total capacity of 12.88 million tons annually. The project will support the development of the Golfinho-Atum natural gas fields located offshore in the Rovuma basis on the northern coast of Mozambique in the Indian Ocean.
Trump administration officials said involvement in the Mozambique project and the Commerce Department-led delegation’s trip to the African nation underscores America’s commitment to expanding trade, investment and commercial ties between the two countries and the Sub-Saharan African region.
“The Trump Administration is committed to increasing trade with African nations where all can reap the benefits of new investments and economic growth,” Kelley said. “American companies and products set the standard in the international market and the historic deal signing between Anadarko Petroleum and the Government of Mozambique reaffirms the goal of achieving long term economic development throughout the region.”
According to the Mozambique government, the project will initially supply volumes of approximately 100 million cubic feet of natural gas per day for domestic sales in Mozambique and key LNG buyers in Asia and Europe.
As of year-end 2018, Anadarko had revenues exceeding $13 billion and produced nearly 1.47 billion barrels-equivalent of proved reserves, making it one of the world’s largest independent oil and gas exploration and production companies. Last month, Anadarko agreed to be acquired by Los Angeles-based Occident in a cash-and-stock deal.