Eni Inks Deal with Korea Gas Corporation

Italian energy group Eni said on Friday it had signed an agreement with Korea Gas Corporation (KOGAS) to boost cooperation in the upstream and liquefied natural gas (LNG) sectors and to jointly pursue opportunities worldwide.

The two companies expect the deal to facilitate the development of their joint LNG project in Mozambique.

State-controlled Eni holds a 50 percent stake in Mozambique's Area 4 field, part of the Rovuma basin, which contains resources of around 85 trillion cubic feet of gas and which is ready to enter the development phase in 2015.

KOGAS, Galp Energia and Mozambique's ENH have a 10 percent stake each in the field, while China's CNPC holds an indirect stake of 20 percent.

Reporting by Agnieszka Flak