Ratification of Mozambique Petroleum Law Seen By Year-End

The Mozambique government currently is revising its legal and fiscal packages for exploration and production, but anticipates its new petroleum law to be ratified by year-end in time for the upcoming licensing round, said Arsenio Mabote, chairman of the Instituto Nacional de Petroleo. Mozambique will seek to promote exploration in offshore areas 4, 5 and 6 in its upcoming licensing round.

The government is also developing a master plan for development of the nation's gas resources, including asset development options, optimal locations, pricing structures and social improvements.

Mozambique's significant offshore natural gas resources in the Rovuma Basin, where 12 gas discoveries have been made to date within a 31 miles (50 kilometers) radius area.

Thanks to exploration activity, the estimate of Rovuma Basin gas resources has been raised from 5 trillion cubic feet (Tcf) in 2009 to 170 Tcf in 2012.

The additional gas resources are located in two main concession areas, 1 and 4. However, more resources may exist as both areas are not fully explored and exploration efforts offshore neighboring Tanzania and Kenya will support the construction of several liquefied natural gas (LNG) plants in the region.

The development of Mozambique's gas resources will help support a number of investment opportunities within the country, including fertilizer, petrochemical, gas-to-liquids, power generation, as well as development if railways, ports and telecommunications infrastructure.

"We understand the challenges that companies face, and we want them to know that the government supports their initiatives," said Mabote.

Anadarko Petroleum Corporation, Eni S.p.A., Statoil ASA and Petroliam Nasional Berhad (Petronas) are the international operators who hold interests in Mozambique. For Anadarko, the cost associated with producing Mozambique's deepwater gas means it must pursue development of gas resources there as an LNG project. The company has no domestic use obligations in its contract, meaning that LNG exports will be its main focus.

"The government understands the stable legal framework needed, but laws need to be finalized before the project can move forward," said John Peffer, president of Anadarko Mozambique.

Despite the cost, Anadarko President and CEO Al Walker sees Mozambique and its tremendous gas resources as the right opportunity for Anadarko to meet its goal of becoming a major LNG player.

Anadarko believes its Afungi LNG development, which it is developing with Italy's Eni S.p.A, offers a cost-competitive source of LNG and a long-term strategic supply for premium Pacific Basin markets. Afungi will also be able to supply the Atlantic market as well, Peffer said.

Anadarko's recoverable gas reserves of between 35 and 65 Tcf from the Prosperidade and Atum are enough to support a two-train LNG development. Anadarko will initially focus on Prosperidade for its two LNG trains. The company expects to safely meet the 12 Tcf of gas it needs for reserve certification. It will also have between 16,000 and 17,000 acres at the project site, with plenty of room for a large scale 50 million tones per annum LNG facility. Anadarko's offshore Mozambique gas resources are enough to support its initial development several times over, and represent a "remarkable accumulation" of gas, Pepper estimated.

The discoveries that will underpin the development are located between 18 to 25 miles (30 to 40 kilometers) offshore. Peffer said the company has successfully route pipelines and flowlines around the active submarine canyons that lie offshore and are up to 1 kilometer deep.

The project currently is in the front end engineering and design phase; results of call for bids are anticipated next year. Afungi will initially deliver 20 million tonnes per annum of LNG when it comes online in 2018. The start of operations at Afungi will make Mozambique the third largest LNG exporter worldwide.

Anadarko expects to submit an environmental impact assessment for the project later this year.

The company is active throughout Africa, including Kenya and Mozambique's deepwater, and in South Africa, where the company recently acquired interests in two blocks.

"Government officials down to the district level recognize that these types of projects take time," Peffer commented. "The population doesn't quite understand this point, but the communication strategy is in place to educate the local communities."

Logistics have improved slightly since Anadarko entered Mozambique, and security offshore and onshore does not pose a major issue at this point, Peffer commented. The limited number of workers, particularly in Pemba and Palma, means Anadarko has had to bring in necessary workers. The Mozambique government sees development of its gas assets as a means of bolstering job creation and education opportunities within the country.

"We have a shared vision, and Anadarko has more than filled its commitment to promoting social and capacity building within the country," Peffer commented.

Barriers to development of Mozambique's natural gas resources include:

lower gas demand and prices due to recessioncompetition from shale gas resources, particularly those in Chinacapital availabilitycompetition from other LNG projects in the Middle East and Australia

The Mozambique government's current efforts to reform and update fiscal and regulatory terms governing oil and gas could be a factor as well, said R. Michael Haney, director of Douglas-Westwood's Houston firm.

Despite the challenge, "we see a lot we like in the Mozambique picture," Haney told conference attendees.

Mozambique could also hold significant oil resources as well, if estimates by Total, which holds interest in offshore areas 3 and 6, are correct.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

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Statoil Farms Out Mozambique License

Norwegian oil major Statoil announced Tuesday that it has farmed down a 25-percent working interest in its exploration license offshore Mozambique to Japan's Inpex Corporation.

The license, which consists of two blocks, is located in areas 2 and 5 offshore Mozambique in the Rovuma Basin. They are situated in a frontier area covering 3,100 square miles in water depths that vary between 985 and 8,200 feet.

"The farm-down reflects the attractiveness of Statoil's acreage in Mozambique. Bringing INPEX onboard allows the companies to diversify geological risk while sharing the potential upside. The first out of two wells in the license will be drilled during 2Q by the drillship Discoverer Americas," Nick Maden, Statoil's senior vice president for international exploration at Statoil.

"Our presence in Mozambique is in line with Statoil's exploration strategy, focusing on early access in a prolific region. Large gas discoveries have recently been made north of the acreage and the prospectivity for hydrocarbons in the Statoil operated blocks is promising."

After the farm-in completion the license will continue to be operation by Statoil Oil & Gas Mozambique with a 40-percent participating interest. As well as Inpex, other partners include Tullow Mozambique, with a 25-percent interest, and the Mozambican state oil company, which has 10 percent.

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Statoil Farms Out Mozambique License

Norwegian oil major Statoil announced Tuesday that it has farmed down a 25-percent working interest in its exploration license offshore Mozambique to Japan's Inpex Corporation.

The license, which consists of two blocks, is located in areas 2 and 5 offshore Mozambique in the Rovuma Basin. They are situated in a frontier area covering 3,100 square miles in water depths that vary between 985 and 8,200 feet.

"The farm-down reflects the attractiveness of Statoil's acreage in Mozambique. Bringing INPEX onboard allows the companies to diversify geological risk while sharing the potential upside. The first out of two wells in the license will be drilled during 2Q by the drillship Discoverer Americas," Nick Maden, Statoil's senior vice president for international exploration at Statoil.

"Our presence in Mozambique is in line with Statoil's exploration strategy, focusing on early access in a prolific region. Large gas discoveries have recently been made north of the acreage and the prospectivity for hydrocarbons in the Statoil operated blocks is promising."

After the farm-in completion the license will continue to be operation by Statoil Oil & Gas Mozambique with a 40-percent participating interest. As well as Inpex, other partners include Tullow Mozambique, with a 25-percent interest, and the Mozambican state oil company, which has 10 percent.

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Gazprom Wants Stake in Eni's Mozambique Gas Assets

Italian energy company Eni SpA is willing to talk to OAO Gazprom about a natural gas deal in Mozambique, although there has been no interest expressed by the Russia behemoth, Chief Executive Paolo Scaroni said Wednesday.

When ask to comment on speculation about interest from the Russian company, Mr. Scaroni said: "This is news to us especially considering how much gas Gazprom has of its own."

Mr. Scaroni told reporters on the sidelines of a conference in Ravenna, northern Italy: "In the search for a partner in the Mamba [field] in Mozambique, we will listen to them [Gazprom], talk to them," referring to the excellent relationship between the two companies. Eni is Gazprom's biggest international corporate buyer of its gas.

Gazprom is interested in a stake in Eni's project in Mozambique but hasn't made an offer yet, said Sergei Kuprianov, a spokesman for the Russian company. He added that discussions are ongoing.

Last week, Eni agreed to sell a 20% stake in its 70% holding to China National Petroleum Corp. for $4.21 billion in a giant offshore gas asset in Mozambique.

Eni has said it has found reserves of 75 trillion cubic feet in the Mozambique field. According to Bernstein Research this amount corresponds to four years of total European gas demand. It is Eni's largest gas find.

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Gazprom Wants Stake in Eni's Mozambique Gas Assets

Italian energy company Eni SpA is willing to talk to OAO Gazprom about a natural gas deal in Mozambique, although there has been no interest expressed by the Russia behemoth, Chief Executive Paolo Scaroni said Wednesday.

When ask to comment on speculation about interest from the Russian company, Mr. Scaroni said: "This is news to us especially considering how much gas Gazprom has of its own."

Mr. Scaroni told reporters on the sidelines of a conference in Ravenna, northern Italy: "In the search for a partner in the Mamba [field] in Mozambique, we will listen to them [Gazprom], talk to them," referring to the excellent relationship between the two companies. Eni is Gazprom's biggest international corporate buyer of its gas.

Gazprom is interested in a stake in Eni's project in Mozambique but hasn't made an offer yet, said Sergei Kuprianov, a spokesman for the Russian company. He added that discussions are ongoing.

Last week, Eni agreed to sell a 20% stake in its 70% holding to China National Petroleum Corp. for $4.21 billion in a giant offshore gas asset in Mozambique.

Eni has said it has found reserves of 75 trillion cubic feet in the Mozambique field. According to Bernstein Research this amount corresponds to four years of total European gas demand. It is Eni's largest gas find.

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ONGC, Oil India in Mozambique Gas Field Bid

NEW DELHI - India's state-run Oil & Natural Gas Corp. and Oil India Ltd. have made a joint bid for a 20% stake in a Mozambique oil and gas field operated by Anadarko Petroleum Corp., a person with direct knowledge of the matter said Friday.

The move underscores the South Asian nation's interest in buying hydrocarbon assets overseas, even if that means it may have to work in alliance with Chinese companies in future.

ONGC's wholly owned unit, ONGC Videsh Ltd., and Oil India have bid for shares being sold by U.S.-based Anadarko and India's Videocon Industries Ltd., said the person, who didn't want to be named.

If the bid by the companies is approved and eventually results in a stake purchase, analysts say it could be India's biggest foreign deal in the oil and gas sector and may also see India and China--who have a history of frosty relations--working together.

The bid follows Thursday's agreement between oil producer Eni SpA and China National Petroleum Corp. under which the Italian oil producer would sell a 20% stake in its Mozambique offshore natural-gas field to the Chinese company for $4.21 billion.

Eni and Anadarko have an agreement to coordinate on their offshore Mozambique reservoirs. The companies last year agreed to conduct separate but coordinated activities, as well as to build common on-shore LNG liquefaction facilities on the northern part of the African country.

The person with knowledge of the matter said Anadarko is planning to bring down its stake in block-1 of the Rovuma offshore field by 10% to 26.5% to raise funds for the project. Videocon plans to sell its 10% stake, the person added.

The person declined to give any financial details and didn't say when the bids will be considered.

ONGC Videsh Managing Director D.K. Sarraf declined comment, while Videocon Chairman Venugopal Dhoot didn't reply to an email seeking comment. Anadarko spokesman John Christiansen said as a matter of policy, it will not discuss any specifics until it has an agreement.

Anadarko's Mozambique assets currently estimated to hold up to 65 trillion cubic feet of gas reserves. According to Eni its oil field has potential reserves of 75 trillion cubic feet of gas in place-equivalent to about four years of total European gas demand, said Bernstein Research. It is Eni's largest gas find.

Sanjay Kaul, President at University of Petroleum and Energy Studies in India, said the stake that the Indian companies are bidding to buy will be valuable.

"Good assets have a good price tag," he added.

ONGC Videsh's $5 billion offer in November to buy an 8.4% stake from ConocoPhillips in a Kazakhstan field is so far the biggest overseas bid by an Indian energy company. The deal has yet to get the approval of the governments in India and Kazakhstan.

Mr. Kaul expects India and China to "cross roads" in the African country as both are working toward achieving energy security for their expanding population. "But I don't see it [China's presence] as a threat to India's interest."

India and China--two energy-deficient countries--already work together on several international oil projects and are also in pact to explore assets overseas. But their bilateral relations aren't often friendly, troubled by a long-simmering border dispute; India's hosting of Tibet's spiritual leader, the Dalai Lama; and Chinese support for Pakistan.

India meets more 75% of its oil and gas requirements through imports and its companies have been scouting for energy assets overseas amid falling output from ageing local assets.

Mr. Kaul said state-run companies need to go through several rounds of bureaucratic checks to buy foreign companies, delaying their overseas plans. He said, most foreign acquisitions by Chinese companies are state-supported.

China has been more successful than India in getting oil and gas equity stakes across the globe, often providing large loans and funding for infrastructure projects in developing nations to tie up deals signed by its four state-owned energy giants.

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ONGC, Oil India in Mozambique Gas Field Bid

NEW DELHI - India's state-run Oil & Natural Gas Corp. and Oil India Ltd. have made a joint bid for a 20% stake in a Mozambique oil and gas field operated by Anadarko Petroleum Corp., a person with direct knowledge of the matter said Friday.

The move underscores the South Asian nation's interest in buying hydrocarbon assets overseas, even if that means it may have to work in alliance with Chinese companies in future.

ONGC's wholly owned unit, ONGC Videsh Ltd., and Oil India have bid for shares being sold by U.S.-based Anadarko and India's Videocon Industries Ltd., said the person, who didn't want to be named.

If the bid by the companies is approved and eventually results in a stake purchase, analysts say it could be India's biggest foreign deal in the oil and gas sector and may also see India and China--who have a history of frosty relations--working together.

The bid follows Thursday's agreement between oil producer Eni SpA and China National Petroleum Corp. under which the Italian oil producer would sell a 20% stake in its Mozambique offshore natural-gas field to the Chinese company for $4.21 billion.

Eni and Anadarko have an agreement to coordinate on their offshore Mozambique reservoirs. The companies last year agreed to conduct separate but coordinated activities, as well as to build common on-shore LNG liquefaction facilities on the northern part of the African country.

The person with knowledge of the matter said Anadarko is planning to bring down its stake in block-1 of the Rovuma offshore field by 10% to 26.5% to raise funds for the project. Videocon plans to sell its 10% stake, the person added.

The person declined to give any financial details and didn't say when the bids will be considered.

ONGC Videsh Managing Director D.K. Sarraf declined comment, while Videocon Chairman Venugopal Dhoot didn't reply to an email seeking comment. Anadarko spokesman John Christiansen said as a matter of policy, it will not discuss any specifics until it has an agreement.

Anadarko's Mozambique assets currently estimated to hold up to 65 trillion cubic feet of gas reserves. According to Eni its oil field has potential reserves of 75 trillion cubic feet of gas in place-equivalent to about four years of total European gas demand, said Bernstein Research. It is Eni's largest gas find.

Sanjay Kaul, President at University of Petroleum and Energy Studies in India, said the stake that the Indian companies are bidding to buy will be valuable.

"Good assets have a good price tag," he added.

ONGC Videsh's $5 billion offer in November to buy an 8.4% stake from ConocoPhillips in a Kazakhstan field is so far the biggest overseas bid by an Indian energy company. The deal has yet to get the approval of the governments in India and Kazakhstan.

Mr. Kaul expects India and China to "cross roads" in the African country as both are working toward achieving energy security for their expanding population. "But I don't see it [China's presence] as a threat to India's interest."

India and China--two energy-deficient countries--already work together on several international oil projects and are also in pact to explore assets overseas. But their bilateral relations aren't often friendly, troubled by a long-simmering border dispute; India's hosting of Tibet's spiritual leader, the Dalai Lama; and Chinese support for Pakistan.

India meets more 75% of its oil and gas requirements through imports and its companies have been scouting for energy assets overseas amid falling output from ageing local assets.

Mr. Kaul said state-run companies need to go through several rounds of bureaucratic checks to buy foreign companies, delaying their overseas plans. He said, most foreign acquisitions by Chinese companies are state-supported.

China has been more successful than India in getting oil and gas equity stakes across the globe, often providing large loans and funding for infrastructure projects in developing nations to tie up deals signed by its four state-owned energy giants.

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Eni Confirms 20% Sale of Mozambique Area 4 for $4.2B

Italian major Eni confirmed Thursday that it has sold a 20-percent share of its Area 4 license block in Mozambique to China National Petroleum Corporation (CNPC), as rumored in a news report last Friday. The company also announced that it has reached an agreement with CNPC for cooperation on the development of the Rongchang shale gas block in the Sichuan Basin, onshore China.

Eni said that Petrochina CEO Zhou Jiping and Eni CEO Paulo Scaroni met in Beijing to sign the Area 4 deal. (Petrochina is controlled by CNPC.)

The agreed price for CNPC's stake in Area 4 was $4.2 billion. Eni will retain a 50-percent interest in the license.

Eni pointed out that CNPC's entrance into the license is "strategically important for the project thanks to the worldwide relevance of the new partner in the upstream and downstream sectors".

ENI and CNPC also signed a joint study agreement to work together on the development of the Rongchang shale gas block, which covers around 760 square miles in the Sichuan Basin. The area, which is closely located to the important consumer markets in China, has already been de-risked by research activities and production tests carried out in nearby blocks, said Eni.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

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Eni Confirms 20% Sale of Mozambique Area 4 for $4.2B

Italian major Eni confirmed Thursday that it has sold a 20-percent share of its Area 4 license block in Mozambique to China National Petroleum Corporation (CNPC), as rumored in a news report last Friday. The company also announced that it has reached an agreement with CNPC for cooperation on the development of the Rongchang shale gas block in the Sichuan Basin, onshore China.

Eni said that Petrochina CEO Zhou Jiping and Eni CEO Paulo Scaroni met in Beijing to sign the Area 4 deal. (Petrochina is controlled by CNPC.)

The agreed price for CNPC's stake in Area 4 was $4.2 billion. Eni will retain a 50-percent interest in the license.

Eni pointed out that CNPC's entrance into the license is "strategically important for the project thanks to the worldwide relevance of the new partner in the upstream and downstream sectors".

ENI and CNPC also signed a joint study agreement to work together on the development of the Rongchang shale gas block, which covers around 760 square miles in the Sichuan Basin. The area, which is closely located to the important consumer markets in China, has already been de-risked by research activities and production tests carried out in nearby blocks, said Eni.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

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Anadarko Has Talked With Exxon, Shell about Mozambique Gas Stake

Anadarko Petroleum Corp. has held early-stage talks with energy companies Exxon Mobil Corp. and Royal Dutch Shell PLC about selling a share of the U.S. oil firm's massive natural gas discoveries off the coast of Mozambique, a senior government official in the country said Thursday.

The discovery of trillions of cubic feet of natural gas offshore Mozambique by Anadarko and Italy's Eni SpA has piqued the interest of some of the world's leading energy companies, which are keen to get a foothold in an area well placed to serve energy-hungry Asian export markets.

Anadarko, an oil and gas exploration company based outside Houston, has said it wants to sell up to 10% of its share of the energy trove.

"We know of Shell speaking to Anadarko, and of talks with ExxonMobil," said the Mozambique official, who spoke on condition of anonymity. He said, however, that Anadarko's talks with the companies so far hadn't brought firm offers as this would have been communicated to the government.

Anadarko spokesman John Christiansen declined to say which potential buyers Anadarko was talking to.

"We've had a lot of interest from a lot of players--a lot of the majors are very interested," he added.

Exxon spokesman Alan Jeffers said: "We don't comment on potential business opportunities."

Shell declined to comment.

"They don't have to tell us which type of discussions; only when it is at a very, very advanced stage do they come to the government and see if we agree," said the Mozambique official. "We have always said a deal will be acceptable if the buyer satisfies the technical and financial requirements, that is all. It is up to the seller to decide."

While Anadarko and Eni have said they want to retain a share in the finds, both firms have sought out investors to allow them to bank some early profits and defray some of the costs of developing a giant liquefied natural gas plant to cool and ship the gas to Asia.

Eni Thursday announced a deal worth $4.21 billion to sell a 20% stake in its field to Chinese state-owned oil company China National Petroleum Corp.

Although Anadarko and Eni agreed in December to jointly develop an LNG plant, neither has extensive experience with building and operating LNG plants, which can cost up to 10s of billions of dollars. By contrast, Exxon and Shell are two of the world's leading LNG investors and shippers.

"Anadarko wants someone with LNG expertise," said the official.

For Shell, buying into Anadarko's license area would be its second attempt at getting a position in Mozambique. Last year, the Anglo-Dutch energy company was outbid by Thailand's PTT Exploration & Production, which snapped up Anadarko's junior partner in the field, London-listed Cove Energy, for $1.9 billion.

Ben Lefebvre in Houston contributed to this report.

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Anadarko Has Talked With Exxon, Shell about Mozambique Gas Stake

Anadarko Petroleum Corp. has held early-stage talks with energy companies Exxon Mobil Corp. and Royal Dutch Shell PLC about selling a share of the U.S. oil firm's massive natural gas discoveries off the coast of Mozambique, a senior government official in the country said Thursday.

The discovery of trillions of cubic feet of natural gas offshore Mozambique by Anadarko and Italy's Eni SpA has piqued the interest of some of the world's leading energy companies, which are keen to get a foothold in an area well placed to serve energy-hungry Asian export markets.

Anadarko, an oil and gas exploration company based outside Houston, has said it wants to sell up to 10% of its share of the energy trove.

"We know of Shell speaking to Anadarko, and of talks with ExxonMobil," said the Mozambique official, who spoke on condition of anonymity. He said, however, that Anadarko's talks with the companies so far hadn't brought firm offers as this would have been communicated to the government.

Anadarko spokesman John Christiansen declined to say which potential buyers Anadarko was talking to.

"We've had a lot of interest from a lot of players--a lot of the majors are very interested," he added.

Exxon spokesman Alan Jeffers said: "We don't comment on potential business opportunities."

Shell declined to comment.

"They don't have to tell us which type of discussions; only when it is at a very, very advanced stage do they come to the government and see if we agree," said the Mozambique official. "We have always said a deal will be acceptable if the buyer satisfies the technical and financial requirements, that is all. It is up to the seller to decide."

While Anadarko and Eni have said they want to retain a share in the finds, both firms have sought out investors to allow them to bank some early profits and defray some of the costs of developing a giant liquefied natural gas plant to cool and ship the gas to Asia.

Eni Thursday announced a deal worth $4.21 billion to sell a 20% stake in its field to Chinese state-owned oil company China National Petroleum Corp.

Although Anadarko and Eni agreed in December to jointly develop an LNG plant, neither has extensive experience with building and operating LNG plants, which can cost up to 10s of billions of dollars. By contrast, Exxon and Shell are two of the world's leading LNG investors and shippers.

"Anadarko wants someone with LNG expertise," said the official.

For Shell, buying into Anadarko's license area would be its second attempt at getting a position in Mozambique. Last year, the Anglo-Dutch energy company was outbid by Thailand's PTT Exploration & Production, which snapped up Anadarko's junior partner in the field, London-listed Cove Energy, for $1.9 billion.

Ben Lefebvre in Houston contributed to this report.

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Eni Confirms 20% Sale of Mozambique Area 4 for $4.2B

Italian major Eni confirmed Thursday that it has sold a 20-percent share of its Area 4 license block in Mozambique to China National Petroleum Corporation (CNPC), as rumored in a news report last Friday. The company also announced that it has reached an agreement with CNPC for cooperation on the development of the Rongchang shale gas block in the Sichuan Basin, onshore China.

Eni said that Petrochina CEO Zhou Jiping and Eni CEO Paulo Scaroni met in Beijing to sign the Area 4 deal. (Petrochina is controlled by CNPC.)

The agreed price for CNPC's stake in Area 4 was $4.2 billion. Eni will retain a 50-percent interest in the license.

Eni pointed out that CNPC's entrance into the license is "strategically important for the project thanks to the worldwide relevance of the new partner in the upstream and downstream sectors".

ENI and CNPC also signed a joint study agreement to work together on the development of the Rongchang shale gas block, which covers around 760 square miles in the Sichuan Basin. The area, which is closely located to the important consumer markets in China, has already been de-risked by research activities and production tests carried out in nearby blocks, said Eni.

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Report: Anadarko, Dhoot to Sell 20% of Mozambique Gas Block

U.S. oil-and-gas explorer Anadarko Petroleum Corp. and Indian billionaire Venugopal Dhoot will auction off 20% of a Mozambique gas field, Reuters news agency reported on its website Tuesday citing unnamed sources.

The sale could be worth $4.5 billion, the report said citing the sources who are familiar with the matter.

PetroChina and Exxon Mobil Corp. are among those expected to bid, the report said citing the sources. Royal Dutch Shell PLC is also looking, the report added.

First-round bids are due on March 14 after an information memorandum on the sale was sent to potential bidders in early February, the report quoted one of the sources saying.

Anadarko said last month it is looking to sell a 10 percent of the block--taking its stake to 26.5 percent.

Mr. Dhoot, who controls electronics conglomerate Videocon Group, wants about $2.5-$3 billion for 10%. Mr. Dhoot paid $75 million for his 10% Rovuma 1 stake in 2008.

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Report: Anadarko, Dhoot to Sell 20% of Mozambique Gas Block

U.S. oil-and-gas explorer Anadarko Petroleum Corp. and Indian billionaire Venugopal Dhoot will auction off 20% of a Mozambique gas field, Reuters news agency reported on its website Tuesday citing unnamed sources.

The sale could be worth $4.5 billion, the report said citing the sources who are familiar with the matter.

PetroChina and Exxon Mobil Corp. are among those expected to bid, the report said citing the sources. Royal Dutch Shell PLC is also looking, the report added.

First-round bids are due on March 14 after an information memorandum on the sale was sent to potential bidders in early February, the report quoted one of the sources saying.

Anadarko said last month it is looking to sell a 10 percent of the block--taking its stake to 26.5 percent.

Mr. Dhoot, who controls electronics conglomerate Videocon Group, wants about $2.5-$3 billion for 10%. Mr. Dhoot paid $75 million for his 10% Rovuma 1 stake in 2008.

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Bechtel Bags FEED Contract for Mozambique Proj.

Bechtel has been selected by Anadarko Mocambique Area 1, Limitada to perform a front end engineering and design (FEED) for a new liquefied natural gas (LNG) facility in the Republic of Mozambique. This is the first LNG project in the country.

"The Mozambique LNG FEED award builds on Bechtel's extensive experience in LNG and in Africa, where we have worked for more than 50 years," said Jack Futcher, president of Bechtel's Oil, Gas and Chemicals business unit. "We are excited by the prospect of working with Anadarko and its partners to develop a world-class facility that will bring jobs and economic development to Mozambique."

The FEED is for the initial phase of the onshore LNG facility that will be built in the Cabo Delgado province in the northeast of the country. Bechtel will develop a design for a multi-train liquefaction plant with a nominal train capacity of five million metric tonnes per annum (MMTPA) of LNG, and an overall LNG park plan that will allow for future expansion of the facility to approximately 50 MMTPA. First commercial LNG sales from the facility are planned for 2018.

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