Mozambique Oil & Gas: ENI gives thumbs up to Coral but CNPC hangs back – Reports
Although the board of the Italian major ENI gave a green light in late November to the FLNG project on the Coral field (Block-4), a lot of uncertainty hangs over the actual timeline for the programme that’s due to generate 3.3-million tons of LNG per year.
ENI hopes that its go-ahead will encourage its partners to agree in turn but none has officially given the nod.
The main sticking point before any final investment decision involves the commitment of China’s CNPC to the project.
CNPC, which indirectly owns 20% of Block-4, has said that the complicated decision-making process at the company can explain its lack of reactivity.
Although there’s little doubt CNPC will give its agreement in the end, there are more uncertainties concerning the two other partners, South Korea’s KOGAS and Galp Energia from Portugal.
ENI has already warned KOGAS and Galp that if they didn’t make up their mind by the end of October it could take over their stakes, or 20% in all.
Although talks are underway, ExxonMobil still hasn’t confirmed whether it will buy into Block-4. (Source: Africa Intelligence)
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