Anadarko Petroleum Corporation (APC) Gearing Up for the Big Leap

Page 1 of 2

After finding one of the biggest natural-gas discoveries in the Rovuma Basin on the east coast of Africa, Anadarko Petroleum Corporation (NYSE:APC) made a wise decision to take advantage of the strategic location of its findings. The company is planning to build the second-largest LNG export terminal in the world to serve the energy-hungry Asian countries.

Anadarko Petroleum Corporation (NYSE:APC)

The discovery made

Anadarko Petroleum Corporation (NYSE:APC) has discovered more than 100 trillion cubic feet of natural gas in the Rovuma Basin area, offshore Mozambique. The area is touted to contain around 250 trillion cubic feet of natural gas, a volume sufficient enough to meet global natural-gas demand for two years.

Anadarko Petroleum Corporation (NYSE:APC) is not the only company to have struck gold in the area. Statoil ASA(ADR) (NYSE:STO) has made significant discoveries in the area as well. It was also able to find a stakeholder for the resources in Japan by the name of Inpex. Statoil ASA(ADR) (NYSE:STO) is exploring the possibility of drilling for oil and is on the verge of completing drilling a well by the end of the month. Statoil registered a 58% decline in its net profit at $1.1 billion, blaming lower production and low prices.

The fuss has brought the African country in the limelight as a potential source of natural gas for countries worldwide, especially for the energy-hungry Asian countries. This huge deposition and the geographical location of the reserves have made it more than feasible to build an LNG export terminal.

The opportunity provided

Mozambique is strategically located to catch the eye of any oil and natural-gas company that wants to satisfy the ever-growing demands of the Asian countries. In a drive to satisfy their energy needs along with safeguarding the environment, the Asian countries are looking for greener sources of energy. This has set huge demand for natural gas in countries like Japan, China and India. In fact, Japan is the biggest importer of LNG in the whole world.

Oil biggies like Chevron Corporation (NYSE:CVX) , Shell, and ConocoPhillips (NYSE:COP) have rushed to grasp the opportunity by building export terminals from nearby Australia. Chevron Corporation (NYSE:CVX)’s Gorgon and Wheatstone LNG projects in Australia are some of the biggest LNG projects and are touted to deliver first loads by 2015 and 2016, respectively.

Chevron is pushing to increase the capacity of these projects, injecting a lot of capital behind these projects to reap the benefits of the Asian market’s price premium. Chevron Corporation (NYSE:CVX) also reported a 6.4% drop in revenue in the first quarter this year to $56.8 billion on the backdrop of decreasing oil prices, though it posted higher production output.

Additionally, the nuclear disaster faced by Japan at Fukushima Daiichi has made these countries aware of the hazards of using nuclear energy, and in turn has boosted the sale of natural gas as the best available alternative.

This provides an enormous opportunity for Anadarko Petroleum Corporation (NYSE:APC) to tap this energy-hungry market where natural gas is trading at price premium, four times higher than the price in the US, by building the world’s second-biggest LNG export terminal offshore Mozambique.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!