ExxonMobil to Lead Construction, Ops of Mozambique LNG Facilities
ExxonMobil Development Africa B.V. has acquired a 25-percent indirect interest in Mozambique’s natural gas-rich Area 4 block from Eni and will assume responsibility for midstream operations, ExxonMobil announced Wednesday.
“ExxonMobil brings our LNG leadership and experience to support development of Mozambique’s high-quality natural gas resources,” Darren W. Woods, ExxonMobil’s chairman and CEO, said in a written statement. “We are confident that our project and marketing expertise, coupled with our financial strength, will help grow the value of Mozambique’s energy resources. We will work closely with our partners to develop this world-class resource.”
Mozambique’s deepwater Area 4 block contains an estimate 85 trillion cubic feet (TCF) of natural gas in place, ExxonMobil stated. Having concluded the transaction with Eni, ExxonMobil noted that it will lead the construction and operation of all future natural gas liquefaction and related facilities tied to the block while Eni will continue to lead the Coral floating LNG (FLNG) project and all upstream operations. This operating model will enable each company to focus on distinct and clearly defined scopes while preserving the benefits of an integrated project, according to ExxonMobil.
According to Eni, Mozambique’s government approved the Coral South Development Plan in February 2016. The plan calls for installing a more than 3.3 million tonne per year FLNG unit fed by six subsea wells. Eni expects the project, slated for a mid-2022 start-up, to produce up to 5 TCF of gas. In a separate written statement, Eni said the final investment decision for the FLNG project was reached in May 2017 – three years after the drilling of the final exploration well.
In March of this year, ExxonMobil and Eni agreed to the Area 4 deal, whose terms included a cash price of approximately $2.8 billion. The transaction gives ExxonMobil a 35.7-percent interest in Eni East Africa S.p.A., which holds a 70-percent stake in Area 4 and will be renamed Mozambique Rovuma Venture S.p.A. Other Eni East Africa owners include Eni (35.7 percent) and CNPC (28.6 percent). Empresa Nacional de Hidrocarbonetos E.P., Kogas and Galp Energia each own 10-percent interests in Area 4.
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