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June 18, 2019

Anadarko Announces Final Investment Decision on Mozambique LNG

On 18 June 2019 Anadarko issued a Final Investment Decision on its Mozambique LNG project which will be Mozambique's first onshore LNG development, consisting of two LNG trains with total nameplate capacity of 12.88 MTPA to support the development of the Golfinho/Atum fields located entirely within Offshore Area 1. Since 2011 King & Spalding has been advising Anadarko Mozambique LNG project. K&S advised on the structuring of the project and the design and implementation of the legal and contractual framework required to implement a financeable greenfield project in Africa via negotiations with the relevant government entities and the other concessionaires.  In parallel, K&S led the procurement strategy with competing FEED contracts for the LNG facilities and drafted and negotiated the engineering, construction, and procurement contracts for the upstream development and the LNG facilities with the chosen EPC contractors. The  K&S LNG marketing team drafted and negotiated long term LNG sales and purchase agreements with a number of offtakers, including Tokyo Gas/Centrica, EDF, Tohoku and CNOOC.  Our work also involved the drafting and negotiation of the unitization agreement executed between Area 1 and Area 4 to regulate the development of the Prosperidade field.  Finally, K&S represented Anadarko with respect to contracts covering certain shared facilities with Area 4 including the marine concessions executed with the Government of Mozambique.