Anadarko Announces Advancement of Mozambique LNG Project

Anadarko Announces Advancement of Mozambique LNG Project 
Reaches Heads of Agreement With Eni 
Awards Front-End Engineering and Design Contracts 
HOUSTON, TX -- (Marketwire) -- 12/21/12 --  Anadarko Petroleum
Corporation (NYSE: APC) today announced that it has reached Heads of
Agreement (HOA) with Eni, establishing foundational principles for
the coordinated development of the common natural gas reservoirs
spanning both Mozambique's Offshore Area 1 (operated by Anadarko) and
Offshore Area 4 (operated by Eni). The HOA is designed to facilitate
a work program whereby the two operators will conduct separate, yet
coordinated, offshore development activities, while jointly planning
and constructing common onshore liquefaction facilities in the form
of an LNG (liquefied natural gas) park in the Cabo Delgado Province
of northern Mozambique.  
"Reaching an HOA with Eni is a significant step that preserves the
project timeline," said Anadarko President and CEO Al Walker. "We
expect the HOA to lead to a unitization agreement to further
facilitate the efficient development of the common resources, as well
as the independent reservoirs on both blocks, enabling enhanced
economies of scale through shared infrastructure and facilities. Our
commercial and technical teams have proven the ability to work
collaboratively through these discussions, as we work alongside the
Mozambican government toward a shared target of first LNG cargoes in
Front-End Engineering and Design (FEED) Contracts
 In addition,
multiple FEED contracts have been awarded for both onshore LNG
construction and offshore installation.  
"We are very pleased to also announce the awarding of multiple FEED
contracts advancing the onshore and offshore components of this LNG
project in northern Mozambique," continued Walker. "Awarding FEED is
an important event for Mozambique, as it marks a significant
milestone in the development cycle of this project. We are pleased
with the alignment of our co-venturers and grateful for the support
of ENH and the government of Mozambique in moving this world-scale
project forward." 
Supplemental Information
 Details regarding the awarding of FEED
contracts for the offshore installation and onshore LNG construction,
as well as conceptual diagrams of the LNG park can be found in the
supplemental information attached to this news release or on our
website at 
Offshore Area 1
 Anadarko is the operator of the Offshore Area 1
Block with a 36.5-percent working interest. Co-venturers include
Mitsui E&P Mozambique Area 1, Limited (20 percent), BPRL Ventures
Mozambique B.V. (10 percent), Videocon Mozambique Rovuma 1 Limited
(10 percent) and PTT Exploration & Production Plc (8.5 percent).
Empresa Nacional de Hidrocarbonetos, ep's (ENH) 15-percent interest
is carried through the exploration phase. 
To date, Anadarko and its co-venturers have discovered two major
natural gas complexes in the Offshore Area 1 of Mozambique's Rovuma
Basin. The Prosperidade complex is estimated to hold between 17 and
30-plus trillion cubic feet (Tcf) of recoverable natural gas
resources in the Offshore Area 1 Block. The separate and distinct
Golfinho/Atum complex, which is fully contained within the Offshore
Area 1 Block, is estimated to hold 15 to 35 Tcf of recoverable
natural gas resources. Evaluation of a third discovery on the block,
Tubarao, is ongoing with an appraisal well that is expected to be
drilled in early 2013. 
Anadarko Petroleum Corporation's mission is to deliver a competitive
and sustainable rate of return to shareholders by exploring for,
acquiring and developing oil and natural gas resources vital to the
world's health and welfare. As of year-end 2011, the company had
approximately 2.54 billion barrels-equivalent of proved reserves,
making it one of the world's largest independent exploration and
production companies. For more information about Anadarko and APC
Flash Feed updates, please visit 
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. Anadarko believes that its
expectations are based on reasonable assumptions. No assurance,
however, can be given that such expectations will prove to have been
correct. A number of factors could cause actual results to differ
materially from the projections, anticipated results or other
expectations expressed in this news release, including Anadarko's
ability to drill, develop and commercially operate the drilling
prospects identified in this news release, to continue to coordinate
development activities with Eni and reach a definitive unitization
agreement, to finalize negotiations and execute the FEED contracts
identified in this news release and to successfully plan, secure
necessary governmental approvals, finance, build and operate the
necessary infrastructure and LNG park. See "Risk Factors" in the
company's 2011 Annual Report on Form 10-K, Quarterly Reports on Form
10-Q and other public filings and press releases. Anadarko undertakes
no obligation to publicly update or revise any forward-looking
Cautionary Note to U.S. Investors: Effective Jan. 1, 2010, the United
States Securities and Exchange Commission ("SEC") permits oil and gas
companies, in their filings with the SEC, to disclose only proved,
probable and possible reserves that meet the SEC's definitions for
such terms. Anadarko uses certain terms in this news release, such as
"recoverable natural gas resources," and similar terms that the SEC's
guidelines strictly prohibit Anadarko from including in filings with
the SEC. U.S. investors are urged to consider closely the disclosure
in Anadarko's Form 10-K for the year ended Dec. 31, 2011, File No.
001-08968, available from Anadarko at or by writing
Anadarko at: Anadarko Petroleum Corporation, 1201 Lake Robbins Drive,
The Woodlands, Texas 77380, Attn: Investor Relations. This form may
also be obtained by contacting the SEC at 1-800-SEC-0330.  
Anadarko Petroleum Corporation
 Mozambique LNG Project
 Dec. 21, 2012 
Offshore Installation FEEDs (Offshore Area 1)
 Subject to final
contract execution, independent, competitive offshore installation
FEEDs will be performed by the following three parties: 

--  Technip USA, Inc.
--  A joint venture comprised of Subsea 7 (US) LLC and Saipem SA
--  A joint venture comprised of McDermott, Inc. and Allseas USA Inc.

The offshore FEEDs will be effective immediately following contract
finalization and will focus on Area 1 subsea production systems for
the Prosperidade complex. The FEEDs will each culminate with the
delivery of a full engineering, procurement, installation and
commissioning plan for the Offshore Area 1 development.  
Onshore LNG FEEDs (Joint Onshore Development)
 Subject to final
contract execution, independent, competitive LNG FEEDs will be
performed by three parties comprised of the following recognized LNG

--  A joint venture comprised of JGC Corporation and Fluor Transworld
    Services, Inc.
--  A joint venture comprised of an affiliated company of CB&I and
    Chiyoda Corporation
--  International Bechtel Co. LTD.

The FEEDs will develop an overall LNG park plan allowing the capability
to produce approximately 50 million tonnes of LNG per annum (MMTPA)
in future years. Each of the LNG FEEDs will deliver designs for an
initial development consisting of four liquefaction trains with
capacity of 5 MMTPA per train. The FEEDs will culminate in the
delivery of a full engineering, procurement and construction plan,
and a lump-sum turnkey price for the initial two 5-MMTPA trains, as
well as associated common facilities. Specifics regarding the second
two 5-MMTPA trains will be developed during the FEED process. 
Image Available: 
Anadarko Contacts  
John Christiansen
Brian Cain
Christina Ramirez
John Colglazier
Wayne Rodrigs
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