Eni achieves financial close for Coral South FLNG

Eni MozThe Coral South project received governmental approval to exploit the Rovuma natural gas basin off the Mozambican coast. (Image source: Maersk Drilling/Flickr)ENI SpA, , together with its Area 4 Partners, has finalised the financial deals for the construction on the Coral South floating liquefied natural gas (FLNG) hub in Mozambique's s Area 4 off-shore block

According to Eni, the total amount of the agreements stands at US$4.7bn.

The Coral South FLNG is the first project sanctioned by the Area 4 Partners for the development of the considerable gas resources discovered by Eni and its partners in the Rovuma Basin offshore Mozambique.

After commissioning, the plant focuses on producing around 3.4mn tonnes of liquefied natural gas (LNG) each year. Eni said that it will be sold directly to BP PLC, following a sale and purchase agreement signed in 2016 for the sale of 100 per cent of the LNG production to BP.

Eni is the operator of Area 4 and holds a 50 per cent indirect interest through its participation in Eni East Africa (EEA). In March 2017, Eni and ExxonMobil signed a sale and purchase agreement, aiming to enable ExxonMobil to acquire a 25 per cent interest in Area 4, through EEA.

The remaining interests in Area 4 are held by CNODC (20 per cent), Empresa Nacional de Hidrocarbonetos EP (10 per cent), Kogas (10 per cent) and Galp Energia (10 per cent).

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