Following the approval of the financing of the Coral FLNG development by Eni’s board of directors, the company’s CEO has paid a visit to the President of Mozambique Filipe Jacinto Nyusi (photo, left) in Maputo.

Claudio Descalzi (photo, right) at the meeting outlined the progress the company has made on its projects in the country, especially its work on the development of offshore, Area 4. The Area 4, located in the deep waters of the Rovuma Basin, contains the giant Coral South gas field on which the investment decision was made by Eni’s board of director last week. On the Coral South Development, Eni is working with its partners to make the final investment decision for the project by the end of this year.

The company recently made a big step as it has chosen BP as its major customer for the gas to be produced. BP will purchase all the LNG to be produced by the Coral South Floating LNG unit, over a period of 20 years, Offshore Energy Today reports.

The Coral South is only the phase 1 of the 15 tcf Coral gas find. The Phase 1 involves the development of 5 trillion cubic feet of gas, the drilling and completion of 6 subsea wells and the construction and installation of a Floating LNG facility, the capacity of which will be around 3.4 mtpa.

Eni is the block operator and holds a 50% stake in the Area 4. Other partners are Galp Energia, KOGAS, Empresa Nacional de Hidrocarbonetos (ENH), which hold 10% stake each, and CNPC, which holds the remaining 20% stake.

Anita Fatunji