• 2 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 2 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 2 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 2 days Schlumberger Warns Of Moderating Investment In North America
  • 2 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 2 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 2 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 2 days New Video Game Targets Oil Infrastructure
  • 2 days Shell Restarts Bonny Light Exports
  • 2 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 3 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 3 days British Utility Companies Brace For Major Reforms
  • 3 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 3 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 3 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 3 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 3 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 3 days Rosneft Signs $400M Deal With Kurdistan
  • 3 days Kinder Morgan Warns About Trans Mountain Delays
  • 4 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 4 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 4 days Russia, Saudis Team Up To Boost Fracking Tech
  • 4 days Conflicting News Spurs Doubt On Aramco IPO
  • 4 days Exxon Starts Production At New Refinery In Texas
  • 4 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 5 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 5 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 5 days China To Take 5% Of Rosneft’s Output In New Deal
  • 5 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 5 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 5 days VW Fails To Secure Critical Commodity For EVs
  • 5 days Enbridge Pipeline Expansion Finally Approved
  • 5 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 5 days OPEC Oil Deal Compliance Falls To 86%
  • 6 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 6 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 6 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 6 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 6 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 6 days Aramco Says No Plans To Shelve IPO
OPEC Seeks Help From U.S. Shale

OPEC Seeks Help From U.S. Shale

OPEC’s secretary general has asked…

Oil Markets Fear Iraqi Escalation

Oil Markets Fear Iraqi Escalation

The military operation by Iraqi…

Eni To Invest $8 Billion In Offshore Gas Field In Mozambique

Offshore Oil Rig

Italy’s oil and gas major Eni SpA (NYSE:E) approved on Friday the investment plan for the first phase of development of the Coral gas discovery in deep waters offshore Mozambique, with the first-phase investment estimated at US$8 billion.

The Coral South project entails the construction of six 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 around 5 billion cubic meters.

The whole Coral field, located in Area 4, is estimated to contain about 16 trillion cubic feet of gas in place, according to Eni.

Mozambique’s government had approved Eni’s development plan for Coral in February of this year.

Now that Eni has approved the investment plan, the project is awaiting the final investment decision (FID), expected to come into effect once all partners of the Area 4 concession approve it and once the project financing is secured.

Related: Oil Majors Scrambling For Acreage In The Booming Wolfcamp

Eni is operator of Area 4 with a 50-percent indirect stake. Eni’s subsidiary Eni East Africa (EEA) owns 70 percent in Area 4, with the other concessionaires, Galp Energia, KOGAS, and Empresa Nacional de Hidrocarbonetos (ENH), each holding 10 percent.

Last month, Eni and its partners in the project signed a binding agreement to sell - for a period of 20 years - all LNG volumes that the Coral South Floating LNG facility would produce to BP Poseidon Ltd, a wholly-owned subsidiary of BP (NYSE:BP).

Eni has been struggling with the low oil prices, like many other majors, and is cutting capital expenditure. The Italian group confirmed last month its target to reduce capex by around 20 percent this year compared to last year “in order to cope with the slump in crude oil prices”.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News