Coral Sul FLNG Project Has Channelled 34 Million Dollars To Mozambican State Coffers

Maputo, 30 May (AIM) – The Coral Sul FLNG Project, a floating platform anchored in Area 4 of the Rovuma basin, led by the Italian Eni multinational in the exploration of Liquefied Natural Gas in the northern province of Cabo Delgado, from October 2022 to May of the current year has channelled 34 million dollars in revenues to the Mozambican state coffers.

However, according to a reliable source, cited by the Maputo daily independent paper “Carta de Moçambique”, the sum will not be used before the establishment of the Sovereign Fund, whose law is still far from being approved by the Assembly of the Republic (AR), Mozambican Parliament.

The Sovereign Fund is an entity to be managed by the Bank of Mozambique and whose objective is to manage revenues from natural gas mega-projects.

“In truth, the 34 million USD was the amount foreseen for the year 2022, but the source hinted that due to commissioning problems within the platform, registered in the first months, consequently, production and exports were also affected”, writes the paper.

The first shipment of natural gas was announced by the Mozambican President on November 13, 2022, in a communication to the nation.

The floating natural gas liquefaction unit, installed offshore in northern Cabo Delgado, has the capacity to produce 3.37 MTPA (million tons per year), using resources from the isolated Coral Sul reservoir.

The investment for this project is 7 billion dollars, and it is expected to generate direct profits of 39.1 billion dollars, of which about 19.3 billion dollars will accrue to the State over 25 years from taxes (IPP and IRPC), bonuses, fees, and profit oil sharing.

The concessionaires for Area 4 of the Rovuma Basin include Mozambique Rovuma Venture (MRV) S.p.A., which is a Joint Venture co-owned by Eni, ExxonMobil and CNODC with a 70% participating interest, Publicly Owned Hydrocarbon Company (ENH) with a 10% participating interest, Galp Energia Rovuma B.V. with a 10% participating interest and KOGAS Mozambique Ltd. with a 10% participating interest.

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