Mozambique: State oil company signs 20-year purchase agreement

On Tuesday, Mozambique’s national oil company ENH announced that it has entered into a 20-year sales agreement with BP for the procurement of liquefied natural gas (LNG) from the South Coral Field, according to ESI Africa.

The agreement was signed together with Block partners Area 4 in Mozambique, including ENL, ENI, operator of Area 4, Galp and Kogas, the state-owned company said in a statement.

According to ENH, the LNG will be delivered and produced in a floating LNG plant installed in South Coral field in the Rovuma Basin.

The FLNG plant will have the capacity to produce above 3.3 million metric tonnes of LNG per year.

“The agreement has been approved by the Government of Mozambique and is a condition for Decision Final Investment (FID) of the project, which is expected to still happen in 2016,” ENH said.

 

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