Eni to splash USD 10 billion on Coral South
Mozambique 
MAPUTO, November 23, 2016 – Italian super-major Eni plans to invest USD 10 billion during the initial development stage of its deepwater Coral South floating LNG (FLNG) project offshore Mozambique, Eni’s CEO Claudio Descalzi confirmed on Monday.
Eni’s board of directors approved the investment plan Friday last week. On Monday CEO Claudio Descalzi met witvh Mozambique’s president Filipe Nyusi and oil minister Letícia Klemens, to discuss the development of the Coral field. Afterwards, when speaking to local press, Descalzi confirmed Eni the current development plan for the Coral South floating LNG (FLNG) project requires a USD 10 billion investment. Descalzi also disclosed that the FLNG will be able to produce 3.3 million tonnes of liquified natural gas annually.
The Coral field is located in the Rovuma basin in the Eni-operated Area 4. The 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. All LNG produced will be sold to BP, according to an agreement signed in October 2016.
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. The Coral South project has Eni’s main focus, but will not be the only development in Area 4. 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.
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.
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