Coral Sul FLNG Has Already Paid $34M in Revenue to the State

The Coral Sul FLNG Project, led by the Italian Eni that extracts and liquefies natural gas, from October 2022, through a floating platform anchored in Area 4 of the Rovuma basin has already drained until May this year 34 million USD in revenues, to the State coffers, “Carta” learnt from a reliable source.

However, the source stressed that the sum will not be used before the approval of the Sovereign Fund, whose Law is still far from being approved by Parliament. The Sovereign Fund is an entity to be managed by the Bank of Mozambique and whose purpose is to manage revenues from natural gas mega-projects.

In truth, the USD 34 million was the amount planned 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.

The floating natural gas liquefaction unit, installed offshore in northern Cabo Delgado, has the capacity to produce 3.37 MTPA (million tonnes per year), using resources from the isolated Coral Sul reservoir. The first shipment of natural gas was announced by the President of the Republic on 13 November 2022 in a communication to the nation.

The investment for this project is USD 7 billion and it is expected to generate direct profits in the order of USD 39.1 billion, of which approximately USD 19.3 billion for the State over 25 years, resulting from taxes (IPP and IRPC), bonuses, fees and the sharing of the oil-profit.

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 70% participating interest, Empresa Nacional de Hidrocarbonetos E.P. (ENH), with 10% participating interest, Galp Energia Rovuma B.V. with 10% participating interest and KOGAS Mozambique Ltd. with 10% participating interest.

Link: https://360mozambique.com/oil-gas/lng/coral-sul-flng-has-already-paid-34m-in-revenue-to-the-state/