Italian major Eni and Korea Gas Corp. (Kogas) signed a cooperation agreement that will allow the two to jointly pursue global opportunities in a number of areas including the upstream and LNG sectors.
|Image from Kogas.|
According to Eni, the duo expects the agreement to facilitate the LNG development of Area 4 in Mozambique where total resources are estimated to be approximately 85Tcf of gas in place and is ready to enter in the development phase in 2015.
Eni-operated Area 4 is located in the deep waters of the Rovuma basin. Eni has a 50% indirect interest, with CNPC who has 20% indirect participation, and Kogas, Galp Energia and Empresa Nacional de Hidrocarbonetos (ENH) with 10% interest each
The Eni/Kogas partnership includes five upstream projects including Mozambique, Cyprus, Iraq, Indonesia and Timor Leste.
Map of Area 4. From Eni.
Earlier this week, Eni East Africa SpA awarded the KD consortium a contract for a front end engineering design (FEED) for a floating liquefied natural gas (FLNG) facility for the Coral South development project in Mozambique. Eni East Africa also has three consortia competing for a engineering, procurement, construction, installation and commissioning (EPCIC) contract to build the new floating LNG facility for the company and its partners to develop the hydrocarbon discovery in the Rovuma basin in Mozambique.
Mozambique has been a hot spot for exploration recently and will continue to do so through several projects, especially since Mozambique will announce its fifth licensing round later this month. The competitive bidding round will include 15 blocks with a total acreage of 76,800sq km in the offshore areas of Rovuma, Zambezi and Angoche. The licensing round is scheduled to close on 20 January 2015.
In July, Sasol announced a joint pre-feasibility study for a large-scale gas-to-liquids (GTL) plant, which will be based on gas from the Rovuma basin. The study, which is being conducted in conjunction with ENH and Eni will assess the viability and benefits of such a plant to the region.
In June, Eni gained operatorship and 40% interest in exploration right permit 236 off the eastern coast of South Africa from Sasol in which the Italian company acquired 82,000sq km of unexplored acreage in the Durban and Zululand basins within the Kwazulu-Natal province.
In May, Eni announced a successful 12th well drilled in Area 4. The Agulha 2 well proved about 25m of gas column in good quality Paleocene reservoir sandstones and confirmed the southern extension of the field.
In Halliburton’s Prosperidade field, nine successful wells have been drilled. Production is scheduled to begin in 2018. Additionally, the company has drilled more than 20 wells and has identified separate natural gas deposits in multi-layered fields named Golfinho/Atum, Orca and Tubarao, which are in different stages of modeling.