Italy's Eni has agreed on the investment plan for the first phase of the development of Mozambique's Coral South offshore gas project, located in the deep waters of the Rovuma Basin (Area 4).
The Coral field was discovered in May 2012 and is entirely located within Area 4 and contains about 450 billion cubic meters (16 TCF) of gas in place.
The project will involve the construction of six subsea wells connected to a floating production facility FLNG (Floating Liquefied Natural Gas), with a liquefaction capacity of over 3.3 million tons of liquefied natural gas (LNG) per year, equivalent to approximately 5 billion cubic meters.
Mozambique authorities approved the project development plan in February. In October, Eni and its Area 4 partners signed an agreement with BP for the sale of the entire volumes of LNG produced by the FNLG Coral South, 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 was the first significant step towards the development of the 2,400 billion cubic meters (85 TCF) of gas discovered in Area 4.
Eni is the operator of Area 4 with a 50 per cent indirect interest owned through Eni East Africa (EEA), which holds a 70 per cent stake in Area 4. The other Concessionaires are Galp Energia, KOGAS and Empresa Nacional de Hidrocarbonetos (ENH), each owning a 10 per cent stake. CNPC owns a 20 per cent indirect interest in Area 4 through Eni East Africa.