ExxonMobil acquire 25 pc stake in Eni block offshore Mozambique
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ExxonMobil to acquire 25 pc stake in Eni block offshore Mozambique

7:46 AM, 10th March 2017
Darren Woods, chairman and CEO of ExxonMobil.
Darren Woods, chairman and CEO of ExxonMobil.

IRVING, US: ExxonMobil Corporation has signed a sale and purchase agreement with Eni SpA to acquire 25 percent indirect interest in the natural gas-rich Area 4 block, offshore Mozambique in East Africa.

The agreed terms include a cash price of approximately $2.8 billion. 

Eni is an Italian multinational oil and gas company, and currently holds a 50 percent indirect share in the block through a 71.4 percent stake in Eni East Africa, which owns 70 percent of the Area 4 concession.

Eni will continue to lead the Coral floating LNG project and all upstream operations in Area 4, while ExxonMobil will lead the construction and operation of natural gas liquefaction facilities onshore. This operating model will enable the use of best practices and skills within Eni and ExxonMobil with each company focusing on distinct and clearly defined scopes while preserving the benefits of a fully integrated project.

Following completion of the transaction, Eni East Africa SpA will be co-owned by Eni (35.7 percent), ExxonMobil (35.7 percent) and China National Petroleum Corporation (28.6 percent). 

The remaining interests in Area 4 are held by Empresa Nacional de Hidrocarbonetos de Mozambique EP (ENH, 10 percent), Kogas (10 percent) and Galp Energia (10 percent).

Natural gas is projected to be the world’s fastest-growing major fuel source, and Mozambique is well-positioned to supply LNG customers around the world.

The deepwater Area 4 block contains an estimated 85 trillion cubic feet of natural gas, which will provide resources for a world-class liquefied natural gas project, in which the partners expect to invest tens of billions of dollars, working in close collaboration with the government and local communities.

“This deal represents material evidence of our exploration strategy based on the early monetization of our exploration discoveries, as a part of our ‘dual-exploration’ model. Through this strategy, Eni has been able to cash in more than $9 billion in the last four years. Moreover, the agreement confirms the world-class quality, production potential, the technical and financial robustness of the entire project,” said Claudio Descalzi, CEO of Eni.

“The asset is a major addition to the company’s global development portfolio. This strategic investment will enable ExxonMobil’s LNG leadership and experience to support the development of Mozambique’s abundant natural gas resources,” said Darren Woods, chairman and CEO of ExxonMobil.

“Our industry-leading project execution, advanced technologies, financial strength and marketing capabilities will help deliver reliable, affordable energy to customers and create long-term economic value for the people of Mozambique, project partners and ExxonMobil shareholders,” added Woods.

© Worldofchemicals News 

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