Mozambique Oil & Gas: ENI may benefit from tech savvy partner in Moz LNG project

Italian oil major ENI could benefit from an additional partner in developing its giant Mozambique gas deposits, especially one with project-management skills in running such complex ventures, a senior company executive said last Friday.
“This contract is so big I guess we could take advantage from (having) a strong additional partner, not only stronger from a financial point of view but also (with) a capability to run such a complicated project,” Eni Chief Financial Officer Massimo Mondazzi said in a conference call.

Eni has been in talks to sell a stake in its Area 4 gas development off the coast of Mozambique, containing 85 trillion cubic feet of gas – one of the richest discoveries ever. Area 4, in which Eni holds a 50 percent operating stake, will feed a series of onshore liquefied natural gas (LNG) export plants, mainly supplying Asian markets.

Mondazzi’s comment came in response to a question whether Eni would be willing to sell more than a 15-20 percent stake in its main Mamba project if it kept operatorship in the nearby Coral development.

Reuters reported in March that ExxonMobil was in talks to buy a stake of varying potential sizes in Eni’s Area 4 development, including a full operating stake.

Eni has been in talks with several buyers including China’s Huadian Corp, sources have said. Coral is a floating LNG export plant and all the supply has already been sold to British major BP.(Source: Reuters)