Eni Rejects Exmar's FLNG Bonus Claim in Congo LNG Dispute

Dispute Overview - Eni SpA has rejected Exmar's claim for a bonus payment related to the floating liquefied natural gas (FLNG) unit sale agreement, citing that the conditions for such an adjustment have not been met [1][4] - The disagreement centers around the performance of the FLNG Tango, which has reportedly exceeded production expectations [2][3] Financial Details - Exmar claims a potential negative price adjustment of $78 million and a maximum bonus of$44 million based on performance metrics outlined in their agreement with Eni [2] - The exact amount of the bonus that Exmar believes it is entitled to remains undetermined [3] Project Development - Eni acquired the FLNG Tango in 2022, which is crucial for the Congo LNG project, with a capacity of 0.6 million tons per year (mtpa) [5] - The project aims to develop the Marine XII gas resources, utilizing two FLNG units, with a second unit, Nguya, expected to begin operations by the end of 2025, increasing total capacity to 3 mtpa, equivalent to approximately 4.5 billion cubic meters per year [6] Ongoing Operations - Despite the financial dispute, development work on the Congo LNG project continues, with key contracts awarded for transport, installation, and marine services [7] - The outcome of discussions between Eni and Exmar remains uncertain, with the potential for escalation into formal legal proceedings [7]