Eni acquires a participation stake in the Angola LNG Project

abarrelfullabarrelfull wrote on 09 Jun 2014 12:16

10th December 2007

Eni, through its fully owned subsidiary Eni Angola Exploration B.V., acquired today from Sonangol Gás Natural (Sonagas) a participation stake of 13,6% in the Angola LNG Limited consortium.

Angola LNG Limited is composed of Sonagas (22.8%), Chevron (36.4%), Eni (13.6%), Total (13.6%) and BP (13.6%).

The consortium is responsible for the construction of a liquefaction plant in Soyo, 350 Km north of Luanda, with a yearly capacity of 5.2 million metric tons of LNG.

The project was sanctioned today and the plant will treat approximately 300 billion cubic meters of gas (associated to oil production) during the project's expected lifespan of 30 years. In addition to LNG, the plant will also produce significant quantities of propane, butane and condensates.

The LNG will be directed to the United States market and will be delivered to the re-gasification plant of Pascagoula, in the Gulf of Mexico.

The Angola LNG project has a high environmental value since it allows the collection of the associated gas from the offshore blocks, in compliance with the existing zero flaring policy.

Angola LNG is the first gas project in the country, where full gas potential remains unexplored.

The involvement of Eni in the Angola LNG consortium is part of the strategic cooperation established between Sonangol and Eni, signed in December 2006 and aiming at the development of gas resources.

In this context Eni finalized on Monday 3rd December another agreement to be part of a second gas consortium, led by Sonagas; this consortium will evaluate existing gas discoveries and explore further potential in the Angolan offshore, with the objective of supporting the feasibility of a second LNG train. This joint venture involves Sonagas (Operator, 40%), Eni (20%, technical partner to the Operator), Gas Natural West Africa (20%), Galp (10%) and Exem Exploration and Production B.V. (10%).

These recent initiatives consolidate Eni's strong position in Angola, where it already produces around 135,000 barrels per day. Eni has been present in the country since 1980 and today is leading an important exploration campaign in the offshore Block 15/06.

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