Portugal's Galp Awaits Coral FID
Galp CEO Carlos Nuno Gomes da Silva said the company’s upstream projects sanctioned to date all break even at an oil price lower than $30 per barrel. He was speaking at the Portuguese firm’s Capital Markets Day in London on March 15.
Most of Galp’s existing upstream equity production is in Brazil and Angola and is predominantly oil. However it has a 10% interest in Eni-operated Area 4 offshore Mozambique where an estimated 85 trillion ft3 of gross gas is initially in place.
Galp’s presentation included two Eni-led projects that could monetise Area 4 gas: the 3.4mn t/y Coral floating LNG project that was cleared for development by Mozambique three weeks ago but which has yet to receive a Final Investment Decision (FID) from Eni, Galp and their partners; and the less advanced, costlier onshore Mamba LNG scheme that would consist of two trains each of 5mn t/y.
Sources in Lisbon told Natural Gas Africa on March 16 however that the $30/b break-even may not necessarily apply to projects yet to be sanctioned.
Eni will hold its 2016 Strategy Presentation in London on March 18 at which analysts will listen out for any announcement on an FID and break-even price for Coral. However, Eni has already deferred FID on Coral from Q3 2015 into this year and could roll it again.
Separately, Galp noted on March 15 that it is planning to begin shooting 3D seismic on Sao Tome e Principe’s offshore block 6 – located in West Africa’s Gulf of Guinea between the island of Sao Tome and mainland Africa (Gabon) – where Galp has a 45% interest and which is its first deep water operatorship. The company is targeting oil but says it’s too soon to say if gas may lie below.
Mark Smedley