The Eni’s investment approval for the project, which already secured development plan approval from Mozambique authorities in February 2016, marks a step towards the final investment decision.
According to the company's estimates, the discovery contains around 16 trillion cubic feet (TCF) of gas in place, wholly located in Area 4.
Discovered in May 2012, the field is expected to commence production in 2020.
The first phase of the project involves the development of five trillion cubic feet (tcf) of gas with an estimated investment of $8bn.
Eni operates the Area 4 with a 50% indirect interest, through Eni East Africa (EEA). The latter firm has 70% stake in Area 4.
Other partners include Galp Energia, Kogas and Empresa Nacional de Hidrocarbonetos (ENH) each holding 10% stake.
Additionally, CNPC, through Eni East Africa, holds 20% indirect interest in Area 4.
The Coral South development project involves the construction of six subsea wells connected to a floating production facility Floating Liquefied Natural Gas (FLNG).
The FLNG will have a liquefaction capacity of over 3.3 million tons annually, equivalent to approximately 5 billion cubic meters.
In October 2016, Eni and its Area 4 partners agreed to sell entire volumes of LNG produced by the Coral South FNLG facility to BP for 20 years.
