The project involves the construction of six subsea wells connected to a FLNG facility, with a liquefaction capacity of more than 3.3 MM tons/year of liquefied LNG, equivalent to about 5 bcm. Mozambique authorities approved the project development plan in February.
The Coral field, discovered in May 2012 and outlined in 2013, is entirely located within Area 4 and contains about 450 bcm (16 tcf) of gas in place.
In October, Eni and its Area 4 partners signed an agreement with BP for the sale of the entire volumes of LNG produced by the Coral South FLNG, for a period of more than 20 years. According to Eni, this was the first agreement ever signed in Mozambique for the sale of LNG produced in the country, and was the first significant step toward the development of the 2,400 bcm (85 tcf) of gas discovered in Area 4.
The company says the approval of this investment by the board is another fundamental step toward the final investment decision on the project, which will turn effective once all Area 4 partners have approved it and the project financing, which is currently being finalized, has been underwritten.
Eni is the operator of Area 4 with a 50% indirect interest owned through Eni East Africa, which holds a 70% stake in Area 4. The other concessionaires are Galp Energia, KOGAS, and Empresa Nacional de Hidrocarbonetos, each owning a 10% stake. CNPC owns a 20% indirect interest in Area 4 through Eni East Africa.