A long-expected Mozambique’s offshore gas project with Italy’s Eni is likely to get the green light within months, according to sources close to the matter. The project, which is to be completed by Eni, is one of the biggest gas finds in the world, with the potential to convert Mozambique from one of the poorest nation in the world into an important energy player, Hellenic Shipping News reported.
Mozambique’s field was discovered in 2010, but negotiations with Eni and the US firm, Anadarko, have dragged on for years amid a row over terms and fears over declining energy prices. Negotiations with the government over tax terms and the funding of the Mozambique national gas company have also moved forward in the last two months.
In July, Eni had concluded deals with contractors and Mozambique’s government, which could help make it to a final investment decision at the end of October, Business Day Live informed. Meanwhile, Eni has already reached a deal to sell the gas to BP.
Mozambique’s Rovuma Basin is estimated to hold 85tcf of gas, which is enough to cover energy needs of Germany, Britain, France, and Italy for nearly two decades.