The Mozambique Rovuma Venture, made up of ExxonMobil, Eni and CNPC, has filed its development plan of the first phase of the Rovuma LNG project to the Mozambican government.
The Rovuma LNG project will liquefy and market natural gas from the Mamba fields contained in the Area 4 block.
Mozambique Rovuma Venture plans to construct two liquefied natural gas (LNG) trains during the first phase with each of them to have an annual production of 7.6 million tons.
The Rovuma LNG project, located in the northern part of the country in the Rovuma Basin, is operated by the Mozambique Rovuma Venture, which holds a stake of 70% in the Area 4 concession. Other partners in the offshore Mozambican block are Galp, KOGAS and Empresa Nacional de Hidrocarbonetos, (ENH), which hold a stake of 10% each.
The Area 4 joint venture parties are expected to make a final investment decision on the LNG project next year with LNG production slated to begin from 2024.
Eni Mozambique program executive vice-president Stefano Maione said: “The Rovuma LNG Project is moving forward swiftly.
“The size of the project makes it not only an important investment in the country, but also supports economic growth and opens new opportunities for Mozambicans.”
The construction and operation of natural gas liquefaction and associated facilities will be led by ExxonMobil on behalf of the joint venture.
On the other hand, Eni will head the construction and operation of upstream facilities of the new LNG project in Mozambique.
The Area 4 partners are also progressing marketing activities relating to the sale of the produced LNG, with negotiations on sales and purchase agreements in progress, targeting completion in parallel with the approval of the development plan.
In December 2017, ExxonMobil forayed into the Area 4 concession by gaining a 25% indirect stake from Eni through the acquisition of a 35.7% stake in Eni East Africa (EEA) for about $2.8bn.
EEA, which has been subsequently renamed as the Mozambique Rovuma Venture, is owned 35.7% each by Eni and ExxonMobil with the remaining stake of 28.6% owned by CNPC.