ENI has plans to expand its activities in Mozambique, in line with the country’s ambitions as an energy producer on the global stage.
Marica Calabrese, Managing Director of Eni Rovuma Basin, anticipates the arrival of the second platform and details other projects.
After more than 15 years of debates, expectations, and postponed promises around natural gas exploration in Mozambique, ENI materialized, in 2022, the first major project in the sector in the north of the country, with the Coral Sul FLNG platform coming into operation.
This historic milestone marked the transition from intentions to achievements in relation to the Rovuma Basin, placing Mozambique in one of the world’s most competitive arenas — the global energy market — and proving that large natural gas projects can work in the country.
Now approaching three years of operation, the Coral Sul project has already generated more than $200 million in tax revenues, mobilized about 100 national companies, secured contracts worth over $800 million, and guaranteed 1,400 direct and indirect jobs — in addition to investing in training: ENI has already placed Mozambicans to work on other oil and gas projects in Algeria, Ivory Coast, Mexico, and beyond.
By 2028, the second platform (Coral Norte), an improved version of the current one, is expected to start production. But there are more ambitions on the horizon. While the main discoveries are located in the Rovuma Basin in the north, Marica Calabrese, Managing Director of Eni Rovuma Basin, indicates in this interview with Economia & Mercado that there are other discoveries along the coast, both offshore and onshore, and that Mozambique deserves “to receive investment on multiple fronts.”
After three years of operation, is it already possible to see the benefits of the Coral Sul platform?
The Coral Sul platform handles one LNG cargo per week, which is definitely a good achievement.
What also makes us proud is the fact that we are delivering value to Mozambique, not just by paying taxes and royalties, but also through indirect benefits such as professional training.
We have several training programs for young Mozambican engineers. It is amazing how quickly they learn the technical work and how proud they are to work for their country on a project of this size and importance. Today, we already have Mozambicans working on other oil and gas projects in Algeria, Ivory Coast, Mexico, and beyond.
There are also benefits for the macroeconomy and for value chains in small and medium-sized enterprises, a business universe we work with extensively.
What has been ENI’s strategy to involve these local companies in the Coral Sul project’s value chain?
At the moment, we have contracts with around 100 local companies, worth about $800 million, and we are working to ensure that this number grows. This means more training, to guarantee even higher quality standards.
In some cases, we help them obtain the certifications they need to work with us. This contributes to job creation, extending the benefits of the Coral Sul project. We estimate the project has already helped create about 1,400 jobs, both direct and indirect, which is significant.
What led you to move forward with the Coral Norte project, that is, a second platform in the Rovuma Basin?
We are moving ahead with the Coral Norte project, which has already been approved, and we are working towards the final investment decision with the goal of starting LNG production in 2028.
The concept is simple: when the Coral Sul platform started production in 2022, we saw the success achieved and asked ourselves: why not do another one?
That’s how the idea came about — to replicate the design and engineering of Coral Sul, but in an optimized way. We are applying all the lessons learned to Coral Norte, using the same technical base while incorporating improvements from the last three years of experience, to quickly deliver to the market a project capable of doubling production.
In terms of size, investment, and production, will the platform be a replica of Coral Sul?
It will be slightly larger, thanks to improvements in several aspects, including efficiency and production capacity. Some preliminary activities have already been carried out.
The platform is being built by a consortium made up of Technip, JGC, and Samsung Heavy Industries — TJS — not just Samsung. The project has become a model, serving as a reference for others in different parts of the world.
Back in 2017, when the Coral Sul FLNG unit was conceived, the LNG industry had many concerns about the concept of floating energy vessels, because until then, no unit had operated consistently in the market. Now there is one — it is a Mozambican platform and a global reference.
But with all the recent changes (COVID-19, the war in Ukraine, global tensions, and the growing sustainability agenda), isn’t natural gas’s role as an energy source under threat?
The market is evolving, and in the last five years, we’ve learned it is very volatile and sensitive. The war in Ukraine was one example.
Gas is an essential instrument for a real energy transition. This transition cannot be done overnight. It requires time — and a fuel that guarantees that passage.
Gas has proven to be clean, efficient, and able to reach any part of the world through liquefaction technology. We strongly believe in this role of gas, but we also understand that the energy transition goes beyond gas: it involves the carbon sector, forests, and other forms of production such as biofuels.
Mozambique is part of that strategy.
We believe Mozambique has the ambition to become a major energy producer in Africa. When the Coral Norte project platform begins production, Mozambique could be the third-largest energy producer on the continent. Considering all ongoing and planned gas projects, the country could easily become Africa’s number one gas producer. The potential is clearly here.
In what way can Mozambique be part of that strategy?
We definitely have other projects in preparation. For now, there is the Coral Norte platform, but also others in the agricultural sector, where we want to increase our activity.
We have already carried out some pilot projects and are working with the authorities to expand them. The advantage is that, while gas projects are highly capital-intensive, the agricultural business is much more labor-intensive, which is fundamental in a society like Mozambique, with a young population.
To give an idea: if the Coral Sul project created about 1,400 jobs, the agricultural sector can create thousands upon thousands of jobs, that is, have an even greater impact.
We believe Mozambique has the ambition to become a major energy producer in Africa. When the Coral Norte project platform begins production, Mozambique could be the third-largest energy producer on the continent. Considering all ongoing and planned gas projects, the country could easily become Africa’s number one gas producer. The potential is clearly here.
But that perspective has been repeated many times without being fulfilled…
For a long time, people said that despite major gas discoveries, there were no tangible benefits. This frustration made sense because there were no projects in execution, and the Coral Sul project shows that it is possible to turn discoveries into real projects and generate benefits for the country and population.
We are talking about more than $200 million already transferred to the government through the Sovereign Fund, and more revenues will come from Coral Sul and other projects.
We all believe the time has come for investors and authorities to ensure that projects move forward and bring tangible benefits to the country and population.
But gas was discovered more than 15 years ago, and production only began with Coral Sul. What is missing for the next projects to advance more quickly?
The crucial point is to start implementing projects. It is time to move forward with more initiatives so that the population can feel, in their daily lives, the benefits of this wealth.
When we talk about new projects, we are also thinking of new initiatives along Mozambique’s coast. This is natural since the main discoveries are located in the Rovuma Basin, in the north. But there are also other discoveries along the coast, offshore and onshore.
Mozambique deserves to receive investment on multiple fronts. The time is now to seize this opportunity, both for the country and for investors.
ENI leads the first operation in the Rovuma Basin. What are the challenges of leading a project of this size?
It is a challenge, I admit, and also a learning process for me and, I believe, for all of Mozambican society.
We are working hard to communicate so that everyone understands what we do. It is difficult to imagine that we are talking about a floating production and liquefaction unit, located 50 kilometers offshore, 400 meters long, 60 meters wide, and hosting about 250 people on board.
From day one, we have dedicated ourselves to establishing a relationship based on trust, especially with the authorities, ensuring that what we do is understood from a technical and ethical standpoint.
This is not an easy project. It has safety, logistics, and engineering challenges. That is why it is important that we work as a team with the authorities, including the National Petroleum Institute (INP) and the Ministry of Mineral Resources and Energy (MIREME), which are our main counterparts to continue achieving the best results for everyone.
The Coral Sul platform was the first FLNG unit in the world to operate in ultra-deep waters. Does that explain part of the challenges?
From an engineering standpoint, that represented a great challenge, because it operates at 2,000 meters depth, with strong currents.
At the same time, we have a constant concern with emissions: our equipment was designed with cutting-edge technology to guarantee the lowest environmental impact.
Is natural gas processed in Mozambique of higher quality, with fewer impurities? Is that an advantage?
Yes, Mozambique’s gas is truly amazing. I am a gas reserves engineer and started my career in the technical department, working in countries such as Congo, Kazakhstan, and Egypt.
I wish all the reserves I worked on were like the ones we have here in Mozambique. They are excellent, both in terms of delivery quality (privileged geographic location for European and Asian markets) and gas quality.
The proportion of carbon dioxide and hydrogen sulfide is very low, which represents a competitive advantage for Mozambique because production costs are lower: the gas already has superior quality and does not require extensive treatment to reach the desired level, making it more competitive in price and profitable for operation.
Beyond gas, what other projects and initiatives are you developing in Mozambique to support sustainability and communities?
We have several carbon offset projects, with a focus on clean cooking. Our goal is to distribute 400,000 improved cookstoves.
These stoves, certified by international bodies, are much more efficient than traditional ones, saving between 75% and 85% of firewood and charcoal. This represents savings for families, health benefits for women and children — who spend a lot of time in enclosed spaces cooking — and reduced deforestation.
We are also implementing a major reforestation project in the Limpopo region, in partnership with Bio Carbon Partner. We work with communities to protect and use forests sustainably, generating carbon credits while offering sustainable livelihood alternatives.
Another focus is the development of biofuels. We want the entire agricultural chain to take place in Africa, creating thousands of jobs through the cultivation of grains destined for biofuel production.
The issue of local content has been a recurring theme in Mozambique for more than a decade. For ENI, does the way of working with local companies follow the same model as in other markets where the company operates?
Prioritizing local content is part of our strategy. We call it the “dual-flag” strategy. Basically, where there is the ENI flag, there is also the country’s flag.
Local content is part of our DNA, it is our commitment to the country in which we operate. There is no other way to add value to Mozambique and Mozambicans if we do not work at the local content level, since developing a country is not just about paying taxes and royalties, but creating economic opportunities.
That is why we have several social projects with communities, because we want quick and direct benefits. With these projects, we meet basic needs in areas including education, health, access to water, and energy.
For example, the inauguration in November 2024 of the Pemba Hospital, with the first and only CT scan imaging equipment in the region. And there are other projects, because we work closely with communities and authorities, seeking to understand needs.
From a more personal perspective, what has been your favorite experience in Mozambique so far?
Without a doubt, the people. I have incredible colleagues, and in daily life, I have met people who impressed me a lot.
There is an openness and warmth that remind me a lot of Latin culture. From the beginning, I felt welcome — and the same happened with my family.
I will always carry these people with me throughout my life.
Text: Pedro Cativelos • Photography: Mariano Silva
