Approval for Investment Plan Coral South Project
Eni’s Board of Directors has authorised the investment for the first phase of the development of the Coral South project, located in the deep waters of the Rovuma Basin (Area 4), offshore Mozambique. The project involves the construction of six subsea wells connected to a floating production facility (FLNG), with a liquefaction capacity of over 3.3t million of liquefied natural gas (LNG) per year. This is equivalent to 5m3 billion. Mozambique authorities approved the development plan in February.
The Coral field is entirely located within Area 4 and contains about 450m3 billion (16 TCF) of gas in place. In October, an agreement was signed with BP for the sale of the entire Coral South volume of LNG, for a period of over twenty years. This was the first step towards the development of the 2,400m3 billion (85 TCF) of gas discovered in Area 4.
The approval by Eni’s Board of Directors is another step towards the Final Investment Decision, which will turn effective once all Area 4 partners have approved it and the project financing has been underwritten. Eni is the operator of Area 4 with a 50% interest owned through Eni East Africa (EEA), which holds a 70% stake in Area 4. The other concessionaires are Galp Energia, Kogas and Empresa Nacional de Hidrocarbonetos (ENH), each owning a 10% stake. CNPC owns a 20% indirect interest in Area 4 through Eni East Africa.