[Mozambique] Coral South

Post Reply
escveritas
Site Admin
Posts: 669
Joined: Sat Aug 29, 2020 5:40 am
Location: Singapore
Singapore

[Mozambique] Coral South

Unread post by escveritas »

Discovery and development of offshore resources

In 2006 we acquired an operator's share in Area 4, in the offshore basin of Rovuma, where in 2011 and 2014 we discovered supergiant resources of natural gas in the fields Coral, Mamba and Agulha, estimated to hold 2,400 billion cubic metres of gas. Coral South is the first deep-water gas development project in Mozambique. At the fifth round of bidding, Eni strengthened its presence in the country by acquiring the offshore licence A5-A, effective from January 2019. Eni has a 34% operator's share in the block. In May 2019, we also got exploration and development rights to the offshore blocks A5-B, Z5-C and Z5-D, in the deep waters of the Angoche and Zambezi basins, with a share of 10%.
In May 2019, the Mozambique Government approved the Rovuma LNG project development plan for the production, liquefaction and marketing of natural gas from three Mamba complex fields located in Area 4, two of which straddle with Area 1. We plan to develop a part of these reserves with an independent but coordinated plan with Total, the operator of the Area 1, to which a part of the non-straddling reserves will be added. Finally, we will build two onshore trains powered by 24 subsea wells for the processing and liquefaction of gas, and the storage and export of LNG with a total capacity of approximately 7.6 million tonnes a year each. Activities for the marketing of LNG are expected to start-up in 2024.

Development using a floating unit

Coral South was the first project approved by our Area 4 partners for developing gas resources discovered in the Rovuma Basin, off Mozambique’s coast. The project involves producing and selling gas from the southern part of the Coral field, using a floating plant for liquefying natural gas (LNG) with a capacity of 3.4 million tonnes. In 2016, we signed an agreement to sell 100 per cent of LNG production to British Petroleum (BP), and on 1 June 2017, we embarked on the start-up phase of the project, just three years after drilling the last test well. The liquefied gas is sold by us and other Area 4 concessionaires (including CNPC, Galp, Kogas, the Mozambican state company ENH and Exxon Mobil through its operator Mozambique Rovuma Venture S.p.A.) to BP, under a 20-year contract with an optional 10-year extension.

Asset

A floating unit for liquefying and exporting gas – and a real technological jewel – Coral Sul FLNG will be the first such on the African continent and the third in the world. Coral Sul FLNG will be 432 m long and 66 m wide, and weigh about 220,000 tonnes overall. The accommodation module will have eight floors with room for 350 people. It will be anchored about 2,000 m deep, with the help of 20 lines weighing 9,000 tonnes combined. Construction of the main components began in 2018. In March of that year, the tower for anchoring the unit was completed and in September, the hull – which is made up of 24 modules, containing storage tanks for the LNG – and part of the treatment plants were finished. In November, the topside (made up of 12 modules for treating gas and producing LNG) and the accommodation module were finished. Coral Sul will have a capacity of about 3.4 million tonnes per year of LNG, fed by six subsea wells, and start-up is expected in 2022. Construction is taking place in seven working centres around the world and overall progress on the project is expected to be more than 60 per cent complete by the end of 2019 – the result of 10 million hours of work. In September 2019, we began drilling and completing six subsea wells for feeding the liquefaction units. They will have an average depth of about 3,000 m and be drilled about 2,000 m under water.
escveritas
Site Admin
Posts: 669
Joined: Sat Aug 29, 2020 5:40 am
Location: Singapore
Singapore

Re: [Mozambique] Coral South

Unread post by escveritas »

Timelines:

2016: Investment and development plans

November: investment plan approved
February: development plan approved for Coral

2017: Final investment decision

Coral Sul FLNG project launched

2018: First components of Coral Sul FLNG

Construction begins on the main components of the FLNG unit

2019: Wells finished at Coral Sul floatin

September: drilling and completion activities begin in six subsea wells at Coral Sul FLNG
July: assembly of the hull for Coral Sul FLNG begins
escveritas
Site Admin
Posts: 669
Joined: Sat Aug 29, 2020 5:40 am
Location: Singapore
Singapore

Re: [Mozambique] Coral South

Unread post by escveritas »

Eni: Approval of the development plan for Eni's Coral discovery offshore Mozambique

San Donato Milanese (Mi), 24 February 2016 - Eni announces the approval of the Plan of Development for the Coral discovery, offshore Mozambique. The approval has been granted by the Government of Mozambique’s Council of Ministers.

The approval relates to the first phase of development of 5 trillion cubic feet of gas in the Coral discovery, located in the Area 4 permit. The discovery is located in water more than 2000 meters deep and approximately 80 kilometers offshore of the Palma bay in the northern province of Cabo Delgado.

The giant discovery, made in May 2012 and outlined in 2013, proved the existence of a high quality field of Eocenic age with excellent productivity. It is estimated to contain around 16 trillion cubic feet (TCF) of gas in place, wholly located in Area 4.

The Plan of Development, the very first one to be approved in the Rovuma Basin, foresees the drilling and completion of 6 subsea wells and the construction and installation of a technologically advanced state-of-the-art Floating LNG facility, the capacity of which will be around 3.4 MTPA.

The Project is also the first in the Rovuma Basin to be granted the Environmental License, in September 2015, at the end of a thorough process involving local communities and national authorities. It was the result of an Environmental and Social Impact Assessment Study, carried out according to the highest standards for the industry.

“Today’s approval of the Coral Plan of Development is a historical milestone for the development of our discovery of 85 TCF of gas in the Rovuma Basin. It is a fundamental step to progress toward the Final Investment Decision of our project which envisages the installation of the first newly built Floating LNG facility in Africa and one of the first in the world. We are proud of Eni’s partnership with Mozambique, a key country in the company’s strategies‘ Eni’s CEO, Claudio Descalzi said.

In addition, Eni and its partners are diligently pursuing the development of important gas reserve base of the Mamba Discovery, which allowed in December 2015 the achievement of a unitization agreement with Area 1.

Eni is the operator of Area 4 with a 50% indirect interest, owned through Eni East Africa (EEA), which holds a 70% stake of Area 4. The other Concessionaires are Galp Energia, KOGAS and Empresa Nacional de Hidrocarbonetos (ENH) with a 10% stake each. CNPC owns a 20% indirect interest in Area 4 through Eni East Africa.
escveritas
Site Admin
Posts: 669
Joined: Sat Aug 29, 2020 5:40 am
Location: Singapore
Singapore

Re: [Mozambique] Coral South

Unread post by escveritas »

Eni's Board of Directors approves investment plan of Coral South project, offshore Mozambique

San Donato Milanese (Milan), 18 November 2016 - Eni's Board of Directors has authorized the investment for the first phase of the development of the Coral discovery (Coral South project), located in the deep waters of the Rovuma Basin (Area 4), offshore Mozambique.

The project involves the construction of 6 subsea wells connected to a floating production facility FLNG (Floating Liquefied Natural Gas), with a liquefaction capacity of over 3.3 million tons of liquefied natural gas (LNG) per year, equivalent to approximately 5 billion cubic meters. Mozambique authorities approved the project development plan in February.

This project highlights Eni’s technological leadership in the development of deepwater gas fields via FLNG facilities.

The Coral field, discovered in May 2012 and outlined in 2013, is entirely located within Area 4 and contains about 450 billion cubic meters (16 TCF) of gas in place.

In October, Eni and its Area 4 partners signed an agreement with BP for the sale of the entire volumes of LNG produced by the FNLG Coral South, for a period of over twenty years. This was the first agreement ever signed in Mozambique for the sale of LNG produced in the country, and was the first significant step towards the development of the 2400 billion cubic meters (85 TCF) of gas discovered in Area 4.

The approval of this investment by Eni’s Board of Directors is another fundamental step towards the Final Investment Decision on the project, which will turn effective once all Area 4 partners have approved it and the project financing, which is currently being finalized, has been underwritten.

Eni is the operator of Area 4 with a 50% indirect interest owned through Eni East Africa (EEA), which holds a 70% stake in Area 4. The other Concessionaires are Galp Energia, KOGAS and Empresa Nacional de Hidrocarbonetos (ENH), each owning a 10% stake. CNPC owns a 20% indirect interest in Area 4 through Eni East Africa.
escveritas
Site Admin
Posts: 669
Joined: Sat Aug 29, 2020 5:40 am
Location: Singapore
Singapore

Re: [Mozambique] Coral South

Unread post by escveritas »

Eni achieves financial close for Coral South FLNG

San Donato Milanese (Milan), 6 December 2017 - Eni, together with its Area 4 Partners, announces that the Coral South FLNG multi-sourced project financing achieved financial close, for a total amount of US$ 4,675,500,000 split in the following facilities:

BPI Export Credit Agency Covered Loan
KEXIM Export Credit Agency Covered Loan
Ksure Export Credit Agency Covered Loan
Sace Export Credit Agency Covered Loan
Sinosure Export Credit Agency Covered Loan
Commercial Bank Direct Loan
KEXIM Direct Loan
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. It targets the production and monetization of the gas contained in the southern part of the Coral gas reservoir, by means of a floating LNG plant with a capacity of 3.4 MTPA. A Sale and Purchase Agreement was signed in 2016 for the sale of 100% of the LNG production to BP.

Eni is the Operator of Area 4, holding a 50 percent indirect interest through its participation in Eni East Africa (EEA). In March 2017, Eni and ExxonMobil signed a Sale and Purchase Agreement to enable ExxonMobil to acquire a 25 percent interest in Area 4, through EEA. The remaining interests in Area 4 are held by CNODC (20%), Empresa Nacional de Hidrocarbonetos E.P. (ENH, 10%), Kogas (10%) and Galp Energia (10%).
escveritas
Site Admin
Posts: 669
Joined: Sat Aug 29, 2020 5:40 am
Location: Singapore
Singapore

Re: [Mozambique] Coral South

Unread post by escveritas »

Eni launches Coral South project in Mozambique

Maputo, 1 June 2017 — The President of the Republic of Mozambique Filipe Nyusi, the Minister of Mineral Resources Leticia Klemens, and Eni’s CEO Claudio Descalzi, participated today to the launch of the Coral South LNG project implementation phase. Managers from the partner companies were also in attendance, including CNPC’s Wang Yilin, Galp’s Carlos Gomes da Silva, Kogas’ Seunghoon Lee and ENH’s Omar Mitha. During the ceremony all the drilling, construction and installation contracts for the production facilities were signed, as well as agreements with the Mozambican government for the regulatory framework and financing of the project.

Coral South is the first project in the development of the considerable gas resources discovered by Eni in Area 4 of the Rovuma Basin. This achievement comes just three years since the drilling of the final exploration well in a country that is a newcomer to the global gas market. Despite the challenging price environment in the last few years, the launch of this project is testament to the quality of the assets in place and to Eni’s technological leadership in the development of deep-water gas fields. The Floating Liquefied Natural Gas (FLNG) unit, a symbol of engineering expertise, will have a capacity of around 3.4 MTPA (million tons per year) and will be the first FLNG in Africa and only the third globally.

The FLNG facilities construction will be financed through Project Finance covering around 60% of its entire cost. This is the first Project Finance ever arranged in the world for a liquefaction floater. The financing agreement has been subscribed by 15 major international banks and guaranteed by 5 Export Credit Agencies.

Eni CEO Claudio Descalzi commented: “As the world transitions to a low-carbon energy mix, Eni believes that the use of gas is critical to achieving a more sustainable future. Our ambition to become a global integrated gas and LNG player is based on working alongside key partners such as Mozambique. The Coral South Project will deliver a reliable source of energy while contributing to Mozambique’s economic development. This partnership approach with our hosting countries is the foundation on which our joint sustainable growth strategy is built.”

The Coral field, discovered in May 2012, is located within Area 4 and contains approximately 450 billion cubic meters (16 TCF) of gas in place. In October 2016, Eni and its Area 4 partners signed an agreement with BP for the sale of the entire volumes of LNG produced by the Coral South project for a period of over twenty years.

Eni is the operator of Area 4, through its participation in Eni East Africa (EEA), which holds a 70% participating interest in the concession while Portugal’s Galp Energia, South Korea’s Kogas and Mozambique’s Empresa Nacional de Hidrocarbonetos (ENH), each hold 10% stake. Eni holds 71.4% shares of Eni East Africa with China’s CNPC holding 28.6%. In March 2017 Eni signed an agreement to sell 50% of its shares in EEA to ExxonMobil, which will be completed subject to satisfaction of a number of conditions precedent, including clearance from Mozambican and other regulatory authorities. In the province of Cabo Delgado and in Maputo Eni has engaged in a vast program of activities to the benefit of the population, including access to energy, access to water, health and sanitation, and education and training activities.
escveritas
Site Admin
Posts: 669
Joined: Sat Aug 29, 2020 5:40 am
Location: Singapore
Singapore

Re: [Mozambique] Coral South

Unread post by escveritas »

Eni starts the installation of the hull of Coral Sul FLNG

The hull is expected to be launched in 2020, in line with the planned production startup of the Coral South Project in 2022.
San Donato Milanese (Milan), 20 July 2019 - Eni has started installation works on the hull of the Coral Sul floating liquefied natural gas (FLNG) treatment and liquefaction unit that will be moored offshore in Mozambique. The unit is part of the Coral South project, which will put in production 450 billion cubic meters of gas from the giant Coral reservoir. The hull is expected to be launched in 2020, in line with the planned production startup of the Coral South Project in 2022.

The Coral Sul FLNG facility will have a gas liquefaction capacity of 3.4 million tons per year when completed and will be the first FLNG vessel ever to be deployed in the deep waters of the African continent. The vessel, which will be 432 metres long and 66 metres wide and weigh about 220,000 tons, will be able to house up to 350 people in its eight-storey accommodation module. The facility will be anchored at a water-depth of around 2,000 metres by means of 20 mooring lines that weigh a combined 9,000 tons.

Construction works on the Coral Sul FLNG started in 2018 and are ongoing in seven operational centres across the world. Construction of the mooring turret began in March; construction of the hull’s 24 modules that contain the LNG storage tanks and sections of the treatment facilities began in September. Construction of the topside, consisting of 12 gas treatment and LNG modules, started last November, along with the living-quarters. By the end of 2019 the overall progress of the project is expected to exceed 60% completion with the total man-hours worked shortly expected to reach 10 million.

Drilling and completion activities for the six subsea wells that will feed the liquefaction unit will begin in September 2019. The wells will have an average depth of approximately 3000 metres and will be drilled in about 2000 metres of water depth. The activities, carried out by the SAIPEM 12000 drilling rig, will be completed by the end of 2020.

Alongside the LNG infrastructure under construction, the Coral South project also includes a number of initiatives aimed at enhancing the overall capabilities of the local workforce. These include specialized training activities for over 800 Mozambicans, who will eventually be employed during the operational phase of the project. Eni is also engaged in a broad programme of social, economic and health care initiatives, to support a long-term, diversified and sustainable development of the local communities.

Eni has been present in Mozambique since 2006, with the acquisition of a participation interest in the exploration concession of Area 4, located in the deep offshore in the Rovuma basin, in the north of the country. Between 2011 and 2014, Eni discovered supergiant natural gas resources in the Coral, Mamba Complex and Agulha reservoirs, holding estimated 2,400 billion cubic metres of gas in place.
escveritas
Site Admin
Posts: 669
Joined: Sat Aug 29, 2020 5:40 am
Location: Singapore
Singapore

Re: [Mozambique] Coral South

Unread post by escveritas »

Image

The last topsides module heavy lifting for the future Coral Sul FLNG was taking place this week at Samsung Heavy Industries yard in South Korea.

The module measured some 70000 tons and is the last out of 13 modules installed. Coral South was the first project approved by Eni Area 4 partners (including CNPC, Galp , Kogas , the Mozambican state company ENH and ExxonMobil through its operator Mozambique Rovuma Venture S.p.A.) for developing gas resources discovered in the Rovuma Basin, off Mozambique’s coast.

The project involves producing and selling gas from the southern part of the Coral field, using a floating plant for liquefying natural gas (LNG) with a capacity of 3.4 million tonnes.

In 2016, Eni signed an agreement to sell 100 per cent of LNG production to bp under a 20-year contract with an optional 10-year extension.

📸 Coral FLNG S.A
Post Reply

Return to “East Africa”

Who is online

Users browsing this forum: No registered users and 1 guest