Nene Marine (Phase 3)

Project Overview

• The Nene Marine (Phase 3) project is part of the larger Nene Marine field, located in the Marine XII Block, approximately 17 km offshore from the coast of the Republic of the Congo.

Operator and Ownership

• The project is operated by Eni S.P.A., which holds a 65% working interest. The other partners in the project are New Age (25%) and Société Nationale des Pétroles du Congo (10%).

Development Phases

• The Nene Marine field is being developed in multiple phases. Phase 1 began production in 2015, focusing on gas reserves, with subsequent phases (Phase 2a, Phase 2b, and the planned Phase 3) aimed at increasing oil and gas production.

Phase 3 Specifics

• Status: The Nene Marine (Phase 3) project is currently in development.
• Reserves: The phase is expected to develop approximately 240 million barrels of oil equivalent (MMboe) of oil and gas reserves.
• Production Capacity: The production design capacity for Phase 3 is estimated at over 50,000 barrels of oil per day (bo/d) and could reach higher levels as the field is fully developed.
• Break-Even Price (BEP): The project has a healthy break-even price of around $30 per barrel.

Investment and Economics

• The development of Nene Marine Phase 3 is expected to require a capital investment of approximately USD 655 million.
• The project is considered to be low risk from a subsurface and technical perspective but faces challenges related to gas commercialization due to the limited domestic Congolese gas market.

Production and Infrastructure

• The oil produced in Phase 3 will be processed through the existing unmanned platform and then sent onshore to the Djeno Oil Terminal for further treatment.
• Gas and condensate from the field are transported to the Djeno gas processing plant and used as feedstock for various gas-to-power plants.

Gas Commercialization

• A significant challenge for the project is the commercialization of the associated gas reserves. The limited domestic market in Congo may lead to gas flaring unless additional gas offtake contracts are secured.
• The Congo LNG Project, which includes the Nene Marine field, aims to exploit the gas resources through Floating Natural Gas Liquefaction (FLNG) units, which will help in commercializing the gas and reducing flaring.

Location

• The field is located offshore, with coordinates approximately at -4.5487, 11.5845 (WGS 84).

Environmental and Carbon Considerations

• The project faces environmental challenges, particularly related to carbon emissions and gas flaring. The lack of gas commercialization options can lead to higher carbon emissions unless addressed through projects like the Congo LNG Project.

Timeline

• While the exact start date for Phase 3 production is not finalized, it is anticipated to begin in the early to mid-2020s, subject to the final investment decision (FID) and other factors.

In summary, the Nene Marine (Phase 3) project is a significant part of Eni's operations in the Republic of the Congo, with substantial oil and gas reserves, but it also faces challenges related to gas commercialization and environmental impact.