Coral Sul FLNG Project
The Coral Sul FLNG Project is currently under implementation by the Area 4 concessionaires in the Rovuma Basin, led by MRV, S.p.A. Under the scope of the activities described in the Concession Contract for Petroleum Exploration and Production, the concessionaires have discovered 77 trillion cubic feet (Tcf) of natural gas.
To add value to this resource, the abovementioned concessionaires submitted the development plan to the Government, which was approved in February 2016 and describes the project for the production of natural gas and its liquefaction from a floating platform.
Briefly, the Coral Sul project foresees the design of a floating natural gas liquefaction unit, to be deployed offshore, which has the annual production capacity of 3.37 MTPA (million tonnes), through the use of resources from the isolated Coral Sul reservoir with a potential resource of up to 15.7 TCF's and the execution of 6 gas development wells.
The investment for this project is USD 7 billion and it is expected to generate direct profits amounting to UDS 39.1 billion of which about USD 19.3 billion for the State over 25 years, resulting from taxes (IPP and IRPC), bonuses, fees and profit oil sharing.
The Final Investment Decision was announced on 01 June 2017, followed by the commencement of the activities that would embody the project.
Indeed, the TJS consortium (Technip-JGC-SHI) was contracted and the construction of the South Coral FLNG floating platform began in the first quarter of 2018. The platform includes components built in several locations around the world, however the main infrastructure was built at Samsung Heavy Industries' shipyards in South Korea.
The drilling and completion campaign for the 6 development wells that embody the Coral Sul FLNG project, in Rovuma Basin Area 4, started in September 2019 and completed in November 2021, following an interruption in 2020 due to COVID 19. At this point, the arrival of the platform, which left South Korea on 16 November 2021, is awaited and is due to arrive in Mozambique in mid 2022. Upon arrival, the infrastructure will be connected to the development wells drilled in Area 4 of the Rovuma Basin.
The initial natural gas production and corresponding liquefaction through the Coral Sul FLNG floating platform is scheduled for the second half of 2022. The hydrocarbon will be exported to the different markets worldwide, thereby meeting the global demand for natural gas, particularly at this critical time of energy transition, and the respective revenues can be used to implement other transformative and structuring projects in Mozambique.
The Area 4 license holders in the Rovuma Basin include Mozambique Rovuma Venture (MRV) S.p.A. which is a Joint Venture co-owned by Eni, ExxonMobil and CNODC, with a 70% participating interest, Empresa Nacional de Hidrocarbonetos E.P. (ENH) with a 10% participating interest and KOGAS Mozambique Ltd. with a 10% participating interest. (ENH), with a 10% participating interest, Galp Energia Rovuma B.V. with a 10% participating interest and KOGAS Mozambique Ltd. with a 10% participating interest.