The Italian multinational Eni closed an agreement to sell Liquefied Natural Gas(LNG), which will be produced in the Area 4 of the Rovuma basin, in Northern Mozambique, to the multinational British Petroleum (BP) for 20 years.
The agreement reached on Tuesday(04) has been signed by the subsidiary of the Italian multinational, Eni East Africa S. p.a.The. (and its partners in the Block Area 4) with the BP Poseidon Ltd., a company fully controlled by BP Plc, indicates a press release.
"The contract is valid for 20 years, covers the sale of all volumes of LNG that will be produced from the factory floating LNG Coral South, which will have a production capacity of over 3.3 million tons of LNG per year. The agreement was already approved by the Government of Mozambique and is conditioned upon the Final Investment Decision(FID) of the project that is expected to happen even in 2016", says the press release which we are quoting.
The final investment decision is delayed at least a year and this agreement may be guaranteed that they lacked the oil of the Italian to get the bank financing, estimated at several billion u.s. dollars, which are necessary for the deployment of a floating platform for the exploitation of Liquefied Natural Gas existing in the field Coral South, in the province of Cabo Delgado.
Mozambique has one of the largest natural gas reserves in the world, estimated at 85 trillion cubic feet, however its exploitation has been affected by the financial and economic crisis derived from debt, secret, and illegal, business MAM, Proindicus and EMATUM, which aggravated the risks of investing in our Country.
The Italian multinational has a 50% stake in Area 4, through its subsidiary ENI East-East Africa, which holds 70 % of the concession. The chinese company CNPC have 20% and Kogas of Korea, Galp Energia of Portugal, and the National Company of Hydrocarbons of Mozambique (ENH) divide in equal shares the remaining 30%.
However, the Eni is in talks advanced to sell half of its stake in the largest oil company in the world, Exxon.