Italy’s Eni and its consortium partners are weighing up several development options in parallel for the giant deepwater gas reserves lying offshore East Africa’s Mozambique, including not only the already-established plans for a major onshore LNG plant but also separate potential Floating LNG (FLNG) and Gas-To-Liquid (GTL) options.
According to partner Galp Energia of Portugal, the consortium has big ambitions for the gas resources, currently estimated to contain up to 80 Tcf of gas in place.
Simultaneous Front End Engineering and Design (FEED) work is already underway for both on and offshore-based projects to tap the reserves, as previously reported (see DI, 11 November 2013, page 1), with the promise of a Final Investment Decision to be made towards the end of this year.
Recognising Mozambique as a world class natural gas province, Galp says the Mamba and Coral structures have now been successfully appraised with more than 80 Tcf gas initially in place, with multiple commercial options including LNG, FLNG and GTL under consideration for development in Rovuma Offshore Area 4.
“We are looking mostly to onshore liquefaction trains but we are also looking at floating LNG and the area straddling Area 2,” said Stephen Whyte, Galp’s group executive for E&P, at the company’s capital market’s day.
The Mamba complex alone is estimated to hold 80 Tcf of gas in place. “Apart from increasing our resources in 2013 in Mamba and Coral, we made a discovery in the south of the block called Agulha [formerly known as ‘K-Bulge’]. And basically that increased our volume in our exclusive block substantially, which gives us many more options for other forms of monetisation,” said Whyte.
Agulha identified an additional 7 Tcf of gas initially in place, increasing the volume exclusively contained in Area 4. Galp also established a new Cretaceous play there.
Two new wells are planned for this year, with one appraisal on Agulha already underway. Another exploration probe will be drilled this year, with the potential for a third. Galp also intends to acquire new 3-D seismic over the south of Area 4 this year.
Meanwhile the development options continue to be screened. “We are working towards making a final investment decision. Front end engineering studies are already ongoing for both onshore liquefaction and FLNG. We are coordinating with Area 1 in shared facilities, for common support infrastructure and at the same time progressing the unitisation on the common resources,” Whyte reported.
Turning to monetisation of the gas, he said conversations started last year over gas sales, mostly with Asian buyers, and he said those will need to be concluded before FID.
Underlining that Mozambique is in the “very early stages” of development, Whyte added: “We are talking about a complex project here. That is also why we are diversifying the monetisation options, because the floating liquefaction units reduce some of our above-ground risk.” He added the consortium was making “every effort” to take an FID by the end of this year. First LNG is planned for 2019.
Area 4 comprises a total of 13,235 sq km (5,100 sq miles), with water depths of up to 2,600 m (8,528 ft). Eni operates the block with a 70% stake, with Galp, Kogas and ENH each holding 10%.
- Contracts for the subsea systems and installation work on Anadarko Petroleum and Eni’s Mozambique projects in Area 1 (the Prosperidade complex) are expected to be awarded by mid-2014 (see DI, 25 November 2013, page 3). Those undertaking FEED work include Technip, a JV between McDermott International and Allseas Group, and another between Subsea 7 and Saipem.
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