Shareholders of Anadarko, the American oil company leading one of the largest natural gas projects underway in Mozambique and Africa, will vote on a proposed merger with fellow American firm, Occidental, on 8 August.
If the merger goes ahead, Occidental will sell all of Anadarko’s projects in Africa to Total, the French oil company, for US$8.8 billion.
“Occidental and Total intend to enter into a definitive sale and purchase agreement before the merger with Anadarko is closed, which in turn should happen by the end of the year”.
In Mozambique, Total is in the petrol station business and was also involved in offshore oil and gas exploration until three years ago.
Upon completion of the proposed business among the three companies, Total should replace Anadarko as leader of the Area 1 consortium for the exploration of liquefied natural gas (LNG), in northern Mozambique, where production is expected to start in 2024.
The gas projects in Area 1 and Area 4 (led by Exxon and Eni) are expected to put Mozambique in the top 10 of the world’s largest producers and accelerate economic growth by 7% to 10% per year.