ENI East Africa, a subsidiary of Italian group ENI, has signed a binding agreement to sell liquefied natural gas to BP Poseidon, a subsidiary of the BP group, the group said in a statement issued on Tuesday in Milan.
The binding agreement, also signed by the partners of the group in the Area 4 block of the Rovuma basin in northern Mozambique, Galp Energia of Portugal, South Korea’s Kogas and the Mozambican state company ENH, is valid for 20 years.
The document involves all the natural gas processed in the Coral Sul floating processing unit, which will have a capacity of more than 3.3 million tonnes of gas per year.
The statement released by the ENI group said the deal has been approved by the government of Mozambique and is only affected by the final investment decision, which is due to be taken this year.
The ENI group is the Area 4 block operator with an indirect 50% owned by ENI East Africa, which holds 70% of that block, the remaining partners are the Galp Energia group, Kogas and ENH with 10% each.
The China National Petroleum Corporation group holds an indirect 20% stake in the block, through ENI East Africa. (macauhub)