Kogas signs off on Coral investment

SEOUL, January 20, 2017 – Korea Gas Company (Kogas) has green lit investment in Mozambique’s Area 4 Coral South floating LNG (FLNG) project, a note published on Thursday read.

Kogas has earmarked USD 514 million for the FLNG venture, which it will invest in through its local subsidiary, KG Mozambique. The investment will be spread out over a period of five years. According to Moody’s Investors Service, the decision was made on Wednesday. Kogas holds a 10% stake in the Coral South project.

Mid-November 2016, operator Eni and Empresa Nacional de Hidrocarbonetos (ENH), Mozambique’s national oil and gas company, announced that their boards of directors approved the investment plan for the first development phase of the Coral South FLNG project. This first phase is estimated to cost USD 8 billion. ENH will spend about USD 800 million to fund its 10% share of the project.

On 26 July, 2013, Eni sold a 28.57% stake in Eni East Africa to China National Petroleum Company (CNPC), for EUR 3.4 billion. By investing in Eni East Africa, CNPC indirectly acquired a stake in Area 4, located offshore in the Rovuma basin. CNPC is reportedly the only entity that has yet to sign off on investment in the project.

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