Mozambique's State-Owned ENH Begins First Direct Offshore Drilling Campaign at Coral Norte

Mozambique's state-owned oil and gas company, Empresa Nacional de Hidrocarbonetos (ENH), has started participating directly in offshore drilling operations for the first time through its joint venture with Italian engineering group Saipem.

The drilling campaign began on 1 November at the Coral Norte project in the Rovuma Basin, marking a new stage in ENH's involvement in Mozambique's offshore gas industry.

The operations are being conducted by ENH-Saipem Drilling Company, in which ENH holds a 51% stake and Saipem owns the remaining 49%. The joint venture is using the Saipem 12000 drillship for a campaign expected to last approximately ten months.

According to Mozambique's National Petroleum Institute (INP), the programme will cover up to six production wells in two successive phases. The work involves drilling and completing the wells that will supply gas to the Coral Norte floating liquefied natural gas (FLNG) facility.

ENH chairman Rudêncio Morais said the company's direct involvement would give Mozambican technicians practical experience in offshore drilling. National personnel will work alongside Saipem specialists aboard the drillship, gaining exposure to specialised drilling operations.

Local content creates opportunities for Mozambican expertise

ENH's participation comes as Mozambique strengthens local involvement in its oil and gas industry through Local Content Law No. 9/2026, adopted on 3 June.

The legislation establishes requirements governing the procurement of goods and services, as well as the recruitment of local workers by oil and gas projects. It provides a framework for Mozambican companies and professionals to participate in the sector.

The Coral Norte development is located in Area 4 of the Rovuma Basin, offshore Cabo Delgado. It will extract gas from the Coral reservoir and process it aboard a floating facility with an annual liquefaction capacity of 3.55 million tonnes of LNG.

The project partners announced the final investment decision on 2 October at a ceremony in Maputo attended by Mozambique's president. The floating facility is designed to operate for 30 years once production begins.

Coral Norte targets first LNG production in 2028

Construction of the floating facility is progressing in South Korea. In an update published on 27 October, the INP reported that construction had reached 72% completion.

The Mozambican government also approved a financing structure of up to US$7.2 billion for the development in September.

Italian energy company Eni expects Coral Norte to begin commercial production in 2028. The project will complement Coral Sul, Mozambique's first floating LNG facility, which has been operating since 2022.

Together, the two developments are expected to increase Mozambique's LNG production capacity to approximately seven million tonnes annually.