The big gas project Coral South in Mozambique, of which Eni is the protagonist together with the of CNPC, the Portuguese Galp, the Korean Kogas and the Mozambican state company Enh, he left. All the partners involved in the exploitation of the immense gas fields of thearea 4 of the Rovuma basin, have reached an agreement on the investment which marks the official start of the development project. Indeed they have been unlocked the first 2,5 billion dollars to build the floating gas liquefaction platform. The floating gas export and liquefaction unit (FLNG) will have a capacity of approximately 3.4 million tons per year and will be the first FLNG in the African continent and the third in the world.
At the official start-up ceremony of operations, which took place on Thursday 1 June in Mozambique, contracts for drilling, construction and installation of production facilities were signed, as well as agreements with the Mozambican government for project financing and the regulatory framework . This is – explains Eni's press release – the first project for the development and production of the important gas resources discovered by Eni in Area 4 of the Rovuma basin. The construction of the Coral South FLNG (Floating liquefied natural gas) will be financed through project finance to cover 60% of the investment. And it is the first case in the world of project finance for a floating liquefaction unit. The financing agreement was signed by 15 lenders and is guaranteed by five Export Credit agencies. "The world is moving towards a low-carbon energy mix, and Eni believes that gas is the resource that will bridge the gap towards a more sustainable future," said Eni's CEO Claudio Descalzi.
The project, due to its size, quality of resources and geographical position, is destined to transform the economy of Mozambique. Eni is operator of Area 4, through its stake in Eni East Africa (EEA), which holds 70% of the concession, while the Portuguese Galp Energia, the Korean Kogas and the Mozambican Empresa Nacional de Hidrocarbonetos (ENH) each hold the 10%. Eni holds 71,4% of Eni East Africa, while CNPC holds the remaining 28,6%.
The first fallout from the kick-off in Mozambique is for Saipem: signed a contract with Eni relating to offshore drilling activities, which will involve the drillship Saipem 12000, for a duration of 15 months starting from mid-2019. The agreement provides for options up to a maximum of 45 months, not included in the contractual value. In addition to this contract, which will allow the company to participate in the development of the Coral field, Saipem has been awarded other contracts in the field of offshore drilling. The activities relating to the further acquisitions will take place in the Mediterranean and in the Black Sea and will involve some flagship vessels of the company fleet. The total value of the acquisitions amounts to 230 million dollars.
