MILAN, Nov 18 (Reuters) - Eni on Friday finalisedplans to develop Mozambique's Coral South offshore gas project,part of a larger scheme that will see Italy's top energy companyand partners spend an estimated $50 billion.
Eni has discovered huge gas reserves in its Area 4concession, offering Mozambique, one of the world's poorestcountries, potentially lucrative liquefied natural gas (LNG)exports.
The Coral South project will require the construction of sixsubsea wells connected to a floating production facility capableof producing more than 3.3 million tonnes of LNG per year, Enisaid.
Friday's approval by Eni's board of directors clears the wayfor final investment decision (FID) on the deep-water CoralSouth project once Eni's partners also approve it and financinghas been underwritten.
Mozambican authorities approved the project's developmentplan in February and Eni has said it expects FID this year.
Last month Eni signed a 20-year deal to supply BP with LNG from the project.
The Coral South field, discovered in May 2012, containsabout 450 billion cubic metres (16 tcf) of gas in place.
Overall reserves discovered in Mozambique's Rovuma Basin inrecent years amount to some 85 tcf, making it one of the largestfinds in a decade with enough gas to supply Germany, Britain,France and Italy for nearly two decades.
Eni is the operator of Area 4 and holds a 50 percentindirect stake held through Eni East Africa, which owns a 70percent stake in Area 4.
Galp Energia, KOGAS and Mozambique'sstate energy firm ENH each own 10 percent.
China's CNPC owns a 20 percent indirect interest in Area 4through Eni East Africa.
Final approval of the project could add impetus to Eni'sefforts to raise several billion of dollars by selling down itsstake in Area 4 and bring onboard another partner or partners tohelp develop the field.
Sources have told Reuters U.S. major Exxon Mobil hasalready clinched a deal to buy a stake in Area 4. (Reporting by Agnieszka Flak; editing by Stephen Jewkes andJason Neely)
BP (BP.)