The Mozambican government’s oil and gas company Empresa Nacional de Hidrocarbonetos (ENH) will have to pay $800m for its share of 10% in the natural gas exploration project in Area 4 of the Rovuma Basin, informed Macauhub. According to a statement issued in Maputo, the board of directors approved the investment plan for the Coral South project, which will require an investment by all partners of $8b for natural gas extraction and liquefaction using a floating platform at sea.
This project involves construction of six wells connected to the underwater production system and the floating production facility, which will have a liquefaction capacity of over 3.3m t/y of natural gas.
“The approval of the investment plan by the company is a key step in the process that will culminate in the adoption of Final Investment Decision (FID) and subsequently with the implementation of the project,” said the President of ENL, Omar Mitha.
Italian group Eni is the operator of Area 4, with an indirect stake of 50%, through its subsidiary Eni East Africa, which holds a direct stake of 70%.
The President of the Republic of Mozambique, Filipe Jacinto Nyusi, met Eni’s CEO, Claudio Descalzi, in Maputo mid-November to discuss the project, Oil Review Africa reported.