Breaking News! ENI’s Board of Directors approves investment plan of Coral South project

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ENI is a step closer to moving ahead with its 16-trillion cubic feet (tcf) deepwater Coral discovery development offshore Mozambique following investment approval from its board of directors.

ENI’s Board of Directors has authorised the investment for the first phase of the development of the Coral discovery (Coral South project), located in the deep waters of the Rovuma Basin (Area-4), offshore Mozambique.

The project involves 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 five-billion cubic meters. Mozambique authorities approved the project development plan in February.

This project highlights ENI’s technological leadership in the development of deepwater gas fields via FLNG facilities. The Coral field, discovered in May 2012 and outlined in 2013, is entirely located within Area-4 and contains about 450billion cubic meters (16tcf) of gas in place.

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 FLNG Coral South, for a period of over 20 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 (85tcf) of gas discovered in Area4.

The approval of this investment by ENI’s Board of Directors 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 finalised, 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, KOGAS and Empresa Nacional de Hidrocarbonetos (ENH), each owning a 10% stake. CNPC owns a 20% indirect interest in Area-4 through ENI East Africa.

ENI is understood to have already ordered a FLNG vessel from South Korea-based Samsung Heavy Industries, which is working in a consortium with France’s Technip and Japan’s JGC on the project.

Source: ENI East Africa S.p.A/OE Digital Edition

Technip puts down roots in Maputo with JGC

The French oil services company Technip, which was picked by ENI to build the FLNG on its Block-4 to liquefy gas from the Coral field, is actively making its preparations on the ground.

Although a final investment decision (FID) has yet to be announced by the Italian major, Technip set up a joint venture with its Japanese partner JGC in late September.

The new company, named TP JGC Coral Mozambique, will be managed directly by Nicolas Sicard, Technip’s boss in Mozambique; and Shoji Yamada, JGC’s Africa chief. Technip and JGC will also be partnered in building the FLNG by the South Korean group Samsung Heavy Industries.

Source: Africa Intelligence
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