Mozambique expects to raise US$16 billion in revenues from the South Coral liquefied natural gas project in the province of Cabo Delgado.
Fábio Castiglioni, Eni Country Manager in Mozambique, to which the government has granted rights to operate the project for the next 30 years, told Notícias that this amount would result from the payment of taxes and royalties on gas belonging to Mozambique.
Speaking at the Maputo International Fair, Castiglioni explained that the Rovuma Area Four project involved drilling six production wells connected to an underwater production system and a floating LNG platform with the capacity to produce more than 3.4 million tonnes of LNG per year.
The company has already signed agreements for the implementation of the project with 15 banks and, at the moment, has a considerable part of the necessary capital available.
“Drilling will start next year, and the company is currently in detailed engineering considerations. We expect the construction of the LNG platform to begin in 2018,” Castiglioni said.
The South Coral LNG project is a major asset for Mozambique and for the region, and will be the first floating liquefied natural gas platform to be built in Africa. The gas is to be sold in its entirety to the multinational BP, which in October last year signed a 20-year agreement with the Eni-led consortium.
The project’s development plan was approved last February by the government. Total investment is estimated at about $8 billion, of which ENH is expected to contribute about US$800 million to fund its 10 percent stake.
Castiglioni added that the project could create a total of 820 jobs, 90 percent of which would be filled by a national workforce who would receive professional training.
Rovuma Basin Area Four is operated by Eni with a 70 percent stake, while Empresa Nacional de Hidrocarbonetos (ENH), Galp Energia and Kogás each hold 10 percent.