Eni Spa (TO:E) and its partners in Area 4 Block in Mozambique – Galp, Kogas and ENH – recently inked a binding Liquefied Natural Gas (LNG) sale agreement with BP (LON:BP) Poseidon Ltd., a company entirely controlled by BP plc (NYSE:BP) . Notably, Eni participated in the deal through Eni East Africa S.p.A (EEA).
The agreement relates to the sale of the LNG produced by the Coral South Floating LNG facility, which is to be installed offshore Mozambique.
The contract involves the sale of all volumes of LNG to be produced from the Coral South Floating LNG facility for more than two decades. The facility will have a capacity above 3.3 million tons per annum of LNG.
The agreement has already received approval from the Government of Mozambique. It is now subject to the Final Investment Decision (FID) of the complete project, which is anticipated within this year.
This agreement is another major milestone toward the execution of the Coral South development project. The Plan of Development was approved by the Government of Mozambique in Feb 2016.
Eni, the operator of Area 4, holds a 50% indirect interest through EEA. On the other hand, EEA holds a 70% stake of Area 4.The other Concessionaires are GalpEnergia, KOGAS and EmpresaNacional de Hidrocarbonetos (ENH) with a 10% stake each. CNPC owns a 20% indirect interest in Area 4 through EEA.
BP will use LNG from the contract to meet its global supply commitments.
Some better-ranked players from the energy sector include NGL Energy Partners LP (NYSE:NGL) and Evolution Petroleum Corp. (TO:E) . Both these stocks sport a Zacks Rank #1 (Strong Buy).
NGL Energy Partners has a mixed earnings surprise history. The partnership posted positive earnings surprise in two of the last four quarters. It reported a positive earnings surprise of 1480.0% in the preceding quarter.
In the last reported quarter, Evolution Petroleum Corp. delivered a positive earnings surprise of 350.00%. Coming to the earnings surprise history, the company beat estimates in two of the last four quarters.
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BP PLC (BP): Free Stock Analysis Report
ENI SPA-ADR (E): Free Stock Analysis Report
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