CNPC Signs Cooperation Agreement with Mozambique's ENH

CNPC has signed a cooperation agreement with Mozambique's national oil and gas company ENH.

The agreement was signed by CNPC Chairman Wang Yilin and Omar Mitha, Chairman of ENH on May 18 in Beijing in the presence of Chinese President Xi Jinping and Mozambique President Filipe Nyusi.

Under the agreement, the two sides will reinforce cooperation in oil and gas exploration and production, and natural gas processing and marketing. Specifically, CNPC will actively participate in Mozambique's E&P projects, promote cooperation in gas field services, and cultivate technicians and managerial talents for Mozambique's oil industry.

CNPC has a stake in Area 4 gas field offshore Mozambique. Eni is the operator of Area 4 with a 50 percent indirect interest owned through Eni East Africa (EEA), which holds 70 percent stake of Area 4. The other concessionaires are Galp Energia, KOGAS and Empresa Nacional de Hidrocarbonetos (ENH) with a 10 percent stake each. CNPC owns a 20 percent indirect interest in Area 4 through Eni East Africa.

Earlier this year, Eni received Mozambican government’s nod for the Coral FLNG project. The approval relates to the first phase of development of 5 trillion cubic feet of gas in the Coral discovery, located in the Area 4 permit. The giant discovery, made in May 2012 and outlined in 2013, proved the existence of a high quality field of Eocenic age with excellent productivity. It is estimated to contain around 16 trillion cubic feet (TCF) of gas in place, wholly located in Area 4