The Mozambican government’s oil and gas company ENH will have to pay US$800 million for its share of 10% in the natural gas exploration project in area 4 of the Rovuma Basin, the company said in a statement issued in Maputo.
The statement said that the board of directors approved the investment plan for the Coral Sul project, which will require an investment by all partners of US$8 billion for natural gas extraction and liquefaction using a floating platform at sea.
“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, cited in the statement.
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 3.3 million tonnes of natural gas per year.
The Final Investment Decision will be made following approval of the investment plan by remaining partners and after financing is secured.
During the research phase, Area 4 concession holders made an investment of about US$2.8 billion.
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 remaining partners are Galp Energia of Portugal, South Korea’s Kogas and Mozambique’s ENH, which have 10% each, and the China National Petroleum Corporation, which has a 20% indirect stake through ENI East Africa. (macauhub)