Launch of LNG production at Congo project with Lukoil participation scheduled for 2023
MOSCOW. April 11 (Interfax) - The production sharing agreement (PSA) for the Marine XII block in the Congo has been adjusted to include a new tax arrangement intended for LNG projects, according to the annual report of Eni, which is the operator with a 65% stake.
"Ongoing studies envisage an accelerated development project in order to monetize associated and non-associated gas in the area for both domestic power generation and LNG exports, and they aim to achieve zero flaring," according to the annual report.
The export project consists of two LNG liquefaction units with a capacity of around two million tonnes per year on the plateau. Launch is expected in 2023, Eni said.
The project also envisages an additional development stage at the Nene-Banga field, with the construction of a new production platform scheduled for commissioning in the second half of 2022.
The 571-sq-km Marine XII licensed area is located on the continental shelf of the Republic of the Congo, 20 km from the coast. The sea depth in the area is 20-90 meters, and five fields have been discovered within the area, and proven and probable reserves (2P) are estimated at 1.3 billion barrels of oil equivalent, according to an international independent audit. In 2015, the Nene and Litchendjili fields were put into operation, and current daily production is 28,000 barrels of mainly light and low-sulfur oil and gas condensate, as well as 1.7 million cubic meters of commercial gas. In 2019, Lukoil bought a 25% stake in Marine XII from New Age M12 Holdings Limited for $800 million. The state-owned company Societe Nationale des Petroles du Congo also participates in the project with a 10% stake.