Eni Board Authorizes Investment for First Phase of Coral Discovery
Eni's board of directors has authorized the investment for the first phase of the development of the Coral discovery, located in the deep waters of the Rovuma Basin offshore Mozambique.
The project involves the construction of six subsea wells, which will be connected to a floating production facility with a liquefaction capacity of over 3.3 million tons of liquefied natural gas per year (equivalent to approximately 5 billion cubic meters).
The Coral field, discovered in May 2012, is entirely located within Area 4 and contains about 16 trillion cubic feet 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 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.
The approval of this investment by Eni’s Board of Directors is another 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 percent indirect interest owned through Eni East Africa (EEA), which holds a 70 percent stake in Area 4. The other Concessionaires are Galp Energia, KOGAS and Empresa Nacional de Hidrocarbonetos (ENH), each owning a 10 percent stake. CNPC owns a 20 percent indirect interest in Area 4 through Eni East Africa.
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