Eni Plans to Make Mozambique FLNG Project FID Later This Year
Italy’s Eni plans to make final investment decision regarding the Coral FLNG project in Mozambique during the second of this year.
“In Mozambique, where Eni has made the greatest discovery in its exploration history with a mineral potential of about 2,500 billion cubic meters of gas in place, we plan to finalize gas contracts and obtain the necessary production licences, in order to make a final investment decision for the project Coral floating LNG in the second half of 2015,” Eni said in its 2014 annual report published Saturday.
The Coral project scheme comprises construction of a floating unit for the treatment, liquefaction and storage of natural gas (Floating LNG - FLNG) fed by subsea wells. The development plan was formally submitted to the local authorities at the end of 2014.
The award of the relevant EPCIC contracts for the construction, installation and commissioning of the floating unit is expected by the end of 2015 and production start-up is expected for the end of 2019, Eni said.
As part of the Mamba development plan, the first stage would involve construction and commissioning of two onshore LNG trains and the drilling of 16 subsea wells, with start-up in 2022. The scheduled activities comprise: (i) the submission of the Declaration of Commerciality to the Government by the third quarter of 2015; (ii) the filing of the development plan by the end of 2015; and (iii) the finalization of the commercial agreements and the project financing by the first quarter of 2016.
Eni expects to make the FID regarding the Mamba project in 2016-2017.
The Italian major entered Mozambique in 2006, with the signature of the Exploration and Production Concession Contract (EPCC) for the Area 4 offshore Rovuma Block. In December 2012, Eni signed an Heads of Agreement (HOA) with Anadarko Petroleum Corporation (APC) foreseeing separate yet coordinated upstream development of the common gas resources in Area 4, operated by Eni, and Area 1, operated by Anadarko.
The potential in place in Area 4 is estimated at 88 tcf (Eni operator with a 50% interest).