The Mozambique government has approved the development plan for the Golfinho-Atum field, which was submitted by SET-listed PTT Exploration and Production (PTTEP), Anadarko Petroleum Corporation, the operator of the Mozambique Rovuma Offshore Area 1 project, and other partners.
The endorsement of the plan is the culmination of several years of progress on the project's development.
"The Mozambique Rovuma Offshore Area 1 project is an important part of our strategic investment plan, so this approval is a significant milestone in building momentum toward a final investment decision," said president Phongsthorn Thavisin.
In recent years, key achievements for the offshore project include the completion of the legal and contractual framework, approval on marine concessions from the Mozambique government and the start of resettlement in November 2017, marking an important step in facilitating construction of the onshore liquefied natural gas (LNG) facilities.
Meanwhile, partners in the project are making progress on efforts to lock in long-term LNG sales and purchase agreements and negotiating project finance issues with related institutions.
Initial developments for the Mozambique Rovuma Offshore Area 1 project include an onshore LNG plant, with two LNG trains with total capacity of 12.9 million tonnes per year.
The Golfinho-Atum project will initially supply 100 million cubic feet of natural gas per day for sale in Mozambique.
The project is being touted for its advantageous location and cost.
The Mozambique Rovuma Offshore Area 1 Project consists of the Prosperidade, Golfinho-Atum, Orca, Tubarao and Tubarao-Tigre fields, with substantial recoverable natural gas resources of 75 trillion cubic feet, potentially making it one of the world's largest emerging LNG supply hubs.
The joint venture partners are PTTEP Mozambique Area 1 Ltd, a subsidiary of PTTEP with an 8.5% participating interest; Anadarko Mozambique Area 1, the operator, with 26.5%; ENH Rovuma Area Um, SA (15%); Mitsui E&P Mozambique Area 1 Ltd, (20%); ONGC Videsh Ltd, (10%); BEAS Rovuma Energy Mozambique Limited, (10%); and BPRL Ventures Mozambique BV, (10%).
As of Dec 31, PTTEP had exploration and production projects in 10 countries.
PTTEP shares closed yesterday on the Stock Exchange of Thailand at 111.50, down 3.50 baht, in trade worth 2.53 billion baht.
