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Eni SpA E, the Italian energy giant, has firmly rejected Belgian shipping company Exmar’s claim that it is entitled to a bonus payment under the terms of their floating liquefied natural gas (FLNG) unit sale agreement. The disagreement stems from the performance of the FLNG Tango, which has been operating at the Congo LNG project off the coast of Africa.
Eni Challenges Exmar’s Bonus Entitlement
The dispute arose after Exmar disclosed that the FLNG Tango had exceeded production expectations and guaranteed levels. The company pointed to a price adjustment clause in its agreement with Eni, which included a potential negative correction of $78 million and a maximum bonus of $44 million based on performance.
Exmar stated that it believes it is entitled to the bonus, though the exact amount remains undetermined. However, Eni has publicly countered this claim, asserting that Exmar’s entitlement to any bonus remains subject to contractual conditions that are yet to be assessed.
“With reference to the Congo FLNG project and to Exmar’s press release dated Feb. 5, 2025, Eni does not agree with Exmar’s statement regarding its alleged accrued entitlement to a positive price adjustment under the relevant contract, as the conditions for such adjustment are yet to be assessed pursuant to such contract,” the Italian energy major stated.
E’s Congo LNG Project Expands Despite Dispute
Eni acquired the FLNG Tango from Exmar in 2022, marking a key step in the development of the Congo LNG project. The facility, with a capacity of 0.6 million tons per year (mtpa), helped launch Congo’s first ever natural gas liquefaction operation.
The project is part of a broader plan to develop the Marine XII gas resources, utilizing two FLNG units at the Nenè and Litchendjili fields. A second, larger FLNG unit, named Nguya, is under construction and expected to begin operations by the end of 2025 with a capacity of 2.4 mtpa. Once operational, Congo LNG’s total capacity will reach 3 mtpa, equivalent to approximately 4.5 billion cubic meters per year.
Despite the financial disagreement, development work on the project continues, with key contracts awarded last year. Wison New Energies secured a transport and installation contract through GEOCEAN, while ABL was selected for marine warranty survey services, and Kotug International was tasked with marine services.
As Eni and Exmar continue discussions, it remains to be seen whether the dispute will escalate into formal legal proceedings or if an amicable resolution can be reached.