Eni has signed contracts and inked regulatory and financial agreements for its proposed Coral South floating LNG (FLNG) project offshore Mozambique.

The Italian oil and gas giant had announced an $8bn investment for the first phase development of the project in November last year.

Located within Area 4 in the Rovuma Basin and operated by Eni, the Coral field which is being developed for considerable gas resources was discovered in May 2012.

The Coral field, which will be moored in 2,000 meters of water depth, has been estimated to contain around 450 billion cubic meters (16 TCF).

According to Eni, the Coral South FLNG is the first FLNG in Africa and third in the world till date and will have a capacity of around 3.4Mtpa of LNG.

Eni CEO Claudio Descalzi said: “As the world transitions to a low-carbon energy mix, Eni believes that the use of gas is critical to achieving a more sustainable future. Our ambition to become a global integrated gas and LNG player is based on working alongside key partners such as Mozambique.

“The Coral South Project will deliver a reliable source of energy while contributing to Mozambique’s economic development. This partnership approach with our hosting countries is the foundation on which our joint sustainable growth strategy is built.”

Eni through its subsidiary Eni East Africa (EEA) holds 70% stake in Area 4 concession. The remainder 30% is equally shared by South Korea’s Kogas, Portugal’s Galp Energia and Mozambique’s Empresa Nacional de Hidrocarbonetos (ENH).

In March, Eni agreed to divest 50% of its stake in EEA to ExxonMobil. The transaction is currently in the process of securing various approvals.

During the project launch, the company had awarded drilling, construction and installation contracts for the production facilities. It also signed agreements pertaining to the regulatory framework and financing of the project with the Mozambican government.

Eni had also awarded an Engineering, Procurement, Construction, Installation, Commissioning and Start-up (EPCIC) contract to TJS Consortium comprised of TechnipFMC, JGC Corporation and Samsung Heavy Industries.

Scope of the EPCIC contract also includes associated risers and subsea flowlines system of the project along with installation of subsea equipment and umbilicals.


Image: Eni exploration and production. Photo: courtesy of Eni.