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Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Masami Iijima) is pleased to announce that Mitsui and its joint venture partners in Mozambique's Rovuma Offshore Area 1 Block ("Area 1") awarded multiple Front-End Engineering and Design ("FEED") contracts for both onshore liquefied natural gas ("LNG") plant construction and offshore installation.
In 2008, Mitsui acquired a partial interest in Mozambique's Area 1, where a world-class gas field was discovered, and the awarding of FEEDs is within the scope of its development program as LNG.
The awarding of FEEDs marks a major milestone in advancing the development of the vast natural gas resources discovered in Area 1. Mitsui, as a joint venture partner of Area 1, will continue to support the effective promotion of the project and contribute to the energy security of Japan and other Asian countries through the stable supply of LNG from the project.
In addition, Anadarko Moçambique Area 1 Lda, the operator of this project, has reached Heads of Agreement ("HOA") with Eni S.p.A. the operator of the adjacent offshore Area 4 Block, establishing principles for the coordinated development of the common natural gas reservoirs spanning both Mozambique's Offshore Area 1 and Offshore Area 4. The HOA mentions that both operators will separately conduct offshore development activities, while they will jointly plan and construct common onshore liquefaction facilities in the form of an LNG park in the Cabo Delgado Province of Northern Mozambique.
|Planned Start-up Year||2018|
|Planned Volume||20 million tonnes of LNG per annum (initial 2 trains with a capacity of 5 million tonnes each, plus 2 additional trains, in total with Area 4)|
An EPC contractor (or a joint venture) for LNG plant will be selected upon the receipt of deliverables from each contractor.
|Target Gas Field||Prosperidade complex, which is estimated to hold over 17 to 30 trillion cubic feet of recoverable natural gas resources|
An EPC contractor (or a joint venture) for offshore installation will be selected upon the receipt of deliverables from each contractor.
Since 2010, ten deep-water exploration wells have been drilled, out of which seven have confirmed the existence of gas. The estimated recoverable resources within the block for Prosperidade Complex is between 17 to 30-plus trillion cubic feet (Tcf) of natural gas and for Golfinho/Atum Complex it is between 15 to 35 Tcf of natural gas, as of the end of November 2012, which makes it one of the largest gas finds in the world. Exploration work will continue in the block, which is believed to still hold additional hydrocarbon resources.
The project plans to produce 10 million tonnes of LNG per annum in the initial development of the gas resources. The preliminary basic design for this stage is already complete, and the contractors of FEEDs have been awarded with a view to making a final investment decision by the end of 2013 and achieving first LNG cargo in 2018. Marketing activities of LNG to Japan, Asia and other regions have also begun, and this project is viewed as a means of contributing to securing a stable supply of energy for Japan. It is anticipated that production can be increased gradually depending on the future global demand for gas.
|Anadarko Moçambique Area 1 Lda||36.5% (Operator)|
|Mitsui E&P Mozambique Area 1 Limited||20%|
|Empresa Nacional de Hidrocarbonetos, ep||15%|
|BPRL Ventures Mozambique B.V.||10%|
|Videocon Mozambique Rovuma 1 Limited||10%|
|PTT Exploration & Production Plc||8.5%|
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.