GE Oil & Gas and Eni East Africa sign long-term partnership to develop gas resources offshore of Mozambique, Reuters stated.

The agreement comprises a multi-year contract to supply subsea production systems, ancillary equipment, and services. It covers the Coral South FLNG project and is the first phase of EEA’s strategically-important development plans for the Rovuma basin Area 4 gas resources. The agreement also covers Area 4 future potential upstream projects. It includes a separate five-year aftermarket services contract for life-of-field of the subsea infrastructure, plus one five-year option and five three-year extensions, World Oil informed.

GE President and CEO of Subsea Systems & Drilling, Neil Saunders, said, “Coral South FLNG is the first major subsea development in East Africa and provides the company with the opportunity to affirm our leadership in large bore technology and our standardized portfolio of subsea equipment and services for deep water projects.”

The Coral South FLNG project, the first phase of EEA’s wider plan of development for the Rovuma basin Area 4, will see the installation of an FLNG facility with a capacity of around 3.4 MTPA. The project is fed by six subsea wells and expected to produce up to 5tcf of gas, with an anticipated start-up in mid-2022. The first ever deep water project to start producing gas in Mozambique will provide significant local economic benefits through job creation and support the region’s future energy needs.

Eni East Africa is the operator of Area 4 and holds 70% of the Area 4 Concession. Eni, is a partner wit CNPC in EEA as Eni owns 71.43% stakes, while CNPC owns 28.57% of EEA.