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December 16, 2015

King & Spalding Advises Anadarko on Unitization of Massive Gas Resource in Mozambique

LONDON, Dec. 16, 2015 — On Nov. 23, Anadarko Mozambique Area 1 Limitada (AMA1), a wholly owned subsidiary of King & Spalding client Anadarko Petroleum Corporation, together with the concessionaires of Offshore Area 1 Mozambique (operated by AMA1), executed a Unitization and Unit Operating Agreement (UUOA) with Eni East Africa (EEA) and the concessionaires of Offshore Area 4 Mozambique (operated by EEA) for the development of massive natural gas resources that straddle Area 1 and Area 4 Offshore Mozambique. The agreement on unitization marks a significant milestone for the Mozambique LNG project.

Under the terms of the UUOA, the Prosperidade and Mamba straddling natural gas reservoirs, which comprise the Unit, will be developed in a separate but coordinated manner by the two operators until 24 trillion cubic feet (Tcf) of natural gas reserves (12 Tcf from each Area) have been developed. All subsequent development of the Unit will be pursued jointly by the Area 1 and Area 4 concessionaires through a joint-venture operator (50:50 Anadarko and Eni). The UUOA is subject to final approval by the government of Mozambique.

Since 2011, King & Spalding has been lead counsel to Anadarko Petroleum Corporation on its multibillion-dollar Mozambique LNG export project, which, in addition to the unitization agreement, has included government agreements as well as agreements on construction, LNG marketing and shipping and other development for the project.

The primary attorney responsible for drafting and negotiation of the UUOA was counsel Nina Howell (London), assisted by partners Philip Weems (Houston), Tom Sprange (London), Ruth Byrne (London) and Vera De Brito de Gyarfas (Houston).

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