Eni clears major Coral South hurdle
Mozambique 
MAPUTO, November 18, 2016 – Italian super-major Eni on Friday announced that its board of directors had approved the investment plan for the Coral South floating LNG (FLNG) project offshore Mozambique.
The Coral South field is located in the Rovuma basin in the Eni-operated Area 4. The decision is one of the last major steps towards the final investment decision (FID), which is expected before the end of the year.
After the first find in Area 4 in 2011, further exploration led to the discovery of the Coral field in May 2012. The Coral field has around 450 bcm (16 tcf) of natural gas in place. Eni’s development programme, which was approved by the Mozambican government in February 2016, includes the drilling of six subsea wells. The wells will be connected to a FLNG facility. Eni expects the FLNG to become operational by 2021.
Eni moving forward with its development plans will provide a boost to Mozambique’s oil and gas sector. Since the initial finds by Anadarko (2010) and Eni (2011) that catapulted the country into the limelight, progress has stalled due to economic stagnation and a fall in commodity prices.
A lot of ground has been covered over the past twelve months. The fifth licensing round, finalised in November 2015, saw ExxonMobil take an operator role in the market, snapping up three deepwater blocks. Anadarko and Eni signed a unitisation and unit operation agreement (UUOA) in December 2015 that will see the two companies work together to develop the Mamba-Prosperidade gasfield, which overlaps the border between Anadarko’s Area 1 and Eni’s Area 4. Anadarko is also making progress on the planned LNG facility near Palma, and expects a FID before 2017.
Eni established a presence in Mozambique in 2006 through its local subsidiary Eni East Africa. The company estimates Area 4 to hold 2.5 tcm (88 tcf) in recoverable natural gas reserves, spread over several reservoirs. Eni East Africa holds a 70% operating interest in Area 4, alongside partners Korea Gas Corporation, Galp Energia and ENH (10% each). The FID is now awaiting approval of Eni’s Area 4 partners, and the finalisation of project financing.
Read our latest insights on:
More content from Mozambique
Latest news and features
