Eni approves investment for Mozambique’s Coral FLNG development

11/18/2016

MILAN -- Eni has authorized the investment for the first phase of the Coral South project. The Coral discovery lies offshore Mozambique in the deep waters of the Rovuma basin (Area 4).

The project involves the construction of six subsea wells connected to a floating LNG (FLNG) facility. The facility will have a liquefaction capacity of over 3.3 million tons of LNG per year, which is equivalent to about 5 Bcm.

Coral field, discovered in May 2012 and outlined in 2013, is entirely located within Area 4 and contains about 450 Bcm (16 Tcf) of gas in place.

In October, Eni and its Area 4 partners signed an agreement with BP for the sale of the entire volume of LNG produced by the Coral South project, for a period of over twenty years. This was the first agreement ever signed in Mozambique for the sale of LNG produced in the country, and it was the first significant step towards the development of the 2,400 Bcm (85 Tcf) of gas discovered in Area 4.

The approval of this investment is another fundamental step towards the Final Investment Decision on the project, which will turn effective once all Area 4 partners have approved it and the project financing, which is currently being finalized, has been underwritten.

Eni is the operator of Area 4 with a 50% indirect interest owned through Eni East Africa (EEA), which holds a 70% stake in Area 4. The other concessionaires are Galp Energia (10%), KOGAS (10%) and Empresa Nacional de Hidrocarbonetos (10%). CNPC owns a 20% indirect interest in Area 4 through EEA.

Mozambique approved the project’s development plan in February.

 

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