BP, Area 4 partners sign LNG sale and purchase agreement for offshore Mozambique

BP and the Area 4 concession partners, Eni East Africa (EEA), Galp Energia (Galp), Kogas and Empresa Nactional de Hidrocarbonetos (ENH), have entered into a sales and purchase agreement for BP to purchase 100% of the liquefied natural gas (LNG) produced by the EEA-operated Coral South Floating LNG facility expected to be installed offshore Mozambique.

The agreement covers the purchase of LNG for over 20 years with the agreement having been approved by the government of Mozambique, conditional on the Final Investment Decision (FID) being taken for the project, which is currently expected by the end of 2016.

The Coral South Floating LNG facility is expected to have a capacity above 3.3 million tonnes per annum.

According to BP’s supply and trading business chief executive Paul Reed BP will use LNG from the contract to help meet its global supply commitments.

“BP is pleased to play a key role in enabling Mozambique to be an LNG exporting country. The agreement adds to the diversity of our natural gas portfolio beyond the end of the decade, further enhancing our ability to meet the needs of our customers,” says Paul Reed.

Commercial details of the agreement were not disclosed.

Eni is the operator of Area 4 with a 50% indirect interest, owned through EEA, which holds a 70% stake of Area 4. Other EEA’s partners in Area 4 are Galp, Kogas and ENH with a 10% stake each with CNPC owns a 20% indirect interest in Area 4 through EEA.

Author: OilNews

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