Eni reports earnings and status of Mozambique LNG projects as well as Ivory Coast gas discovery plans

Monday, 01 November 2021
Free Read

Eni, the Italian major developing Mozambique LNG and with stakes in liquefaction plants in Angola and Nigeria, said the Mozambican Coral South floating LNG project would start up in the second half of 2022.

Eni made the point on Coral South FLNG as it reported upstream adjusted gross earnings in the first nine months of €5.7 billion ($6.6Bln).

On Coral South FLNG, Eni added that there would be 3.4 million tonnes per annum and the LNG would be entering the market at the right time.

Eni also gave a limited update on plans for the Area 4 natural gas resources in the Rovuma Basin of Mozambique.

“Regarding Area 4, the updated project and the new final investment decision date will be defined and based on the results of the ongoing optimization phase,” said Eni.

“We will also take into account the evolution of the security situation in the northern part of Cabo Delgado Province in Mozambique,” it added.

This was a reference to violence in the area from insurgents that shut-down the TotalEnergies-led onshore LNG project for Mozambique’s Area 1 Rovuma Basin natural gas resources.

The third-quarter results for Milan-based Eni amounted to €2.4Bln ($2.8Bln), which was above the pre-Covid levels even as production was still ramping up after the maintenance season.

Project ramp-ups

Eni said the ramp-ups in Indonesia, Sharjah in the United Arab Emirates and in Angola more than offset the negative effects of US Hurricane Ida.

The company said its cash flow from operations before working capital for the nine months was strong at €8.1Bln, more than covering capital expenditure of €4Bln in the same period.

For all of 2021, Eni expects cash flow from operations before working capital to be close to €12Bln, based on a Brent crude oil price of around $70 a barrel.

Eni expects overall production to further recover in the fourth quarter at 1.76 million barrels per day.

Eni also explained the positive prospects for a discovery made in September 2021 offshore the Ivory Coast in West Africa.

“The first well discovered light oil and associated gas in a new play concept in the deep water Baleine Prospect, with preliminary estimate of more than 2 billion barrels of oil equivalent,” said Eni.

The company explained that the Baleine project would be designed to target fast-track development to meet the West African nation’s domestic natural gas need in an environmentally-friendly manner.

Eni said it had additionally signed an agreement with Russia’s Gazprom to revise the terms of existing long-term pipeline gas supply contracts in Europe.

“This is in the light of the current and future market evolution, including the settlement of the ongoing disputes between the parties,” explained Eni.

“The agreement underlines the importance of the role played by gas in the decarbonization process and sustainability strategies,” it added.

Related Video

Free Read