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Mozambique Seeks Bigger Stake in Anadarko, Eni Gas Fields

Mozambique’s national oil company plans to increase its stake in fields operated by Anadarko Petroleum Corp. (APC) and Eni SpA (ENI) as the country seeks a greater share of profit from the largest natural-gas discovery in a decade.

“We are trying to see how we can increase our participation in the projects,” Empresa Nacional de Hidrocarbonetos’ Director of Engineering and Projects Engineering Paulino Gregorio said in an interview in the capital, Maputo. “Of course, we have financial constraints.”

Mozambique’s offshore fields may hold enough gas to meet global demand for more than two years, according to ENH, which holds 15 percent of the Rovuma-1 deposit operated by Anadarko and 10 percent of four Eni fields. The fuel will feed liquefied natural gas export plants for shipment to world markets.

Brian Cain, a spokesman for The Woodlands, Texas-based Anadarko, declined to comment, while Eni’s Filippo Cotalini in Milan didn’t answer a call to his phone.

Mozambique plans to build four LNG units with a total capacity of 20 million metric tons a year by 2018, making it the world’s largest LNG export site after Ras Laffan in Qatar. The development may cost $20 billion.

International Bidders

International Bechtel Co.; Chicago Bridge & Iron Company NV (CBI) and Chiyoda Corp. (6366); and a venture between JGC Corp. (JGCCY) and Fluor Transworld Services Inc. are bidding to construct the LNG plants, Gregorio said Nov. 6.

Technip SA (TEC); McDermott International Inc. (MDR) and Allseas Group SA; and Subsea 7 SA (SUBC) and Saipem SpA (SAPMY) are bidding for the underwater work to bring the gas to the plants, according to Gregorio. The contracts will be awarded in the first half of next year and construction will begin by early 2015, he said.

East Africa has attracted global oil producers seeking to add reserves as traditional fields mature and go into decline. As gas discoveries have been made, national energy companies have sought a larger portion of future revenues as demand from Asian markets continues to climb.

Banks have approached ENH to help arrange financing for its stake in the offshore gas and LNG development, Gregorio said, declining to identify any. Mozambique also plans an industrial zone around the LNG plants and a 2,100-kilometer (1,300-mile) north-south pipeline to help nurture local industries, he said.

The government will probably announce a bidding round for new offshore exploration blocks once parliament approves a new petroleum law, he said.

To contact the reporter on this story: Franz Wild in Johannesburg at fwild@bloomberg.net

To contact the editor responsible for this story: Nasreen Seria at nseria@bloomberg.net

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