ExxonMobil acquire 25 pc stake in Eni block offshore Mozambique

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 



Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News

Henkel to buy hair care company in US

DUSSELDORF, GERMANY: Henkel AG & Company has signed an agreement to acquire Nattura Laboratorios SA de CV, headquartered in Guadalajara, Mexico, a ...

Read more
Archroma joins Ethical Affair to train women entrepreneurs in Pakistan

REINACH, SWITZERLAND: Archroma has signed a memorandum of understanding (MoU) with Ethical Affair, a knowledge-based platform striving to provide trai ...

Read more
Wacker expands silicon-metal capacity in Norway

MUNICH, GERMANY/ HOLLA, NORWAY: Wacker Chemie AG is expanding the capacity of its silicon-metal site at Holla in Norway. The Munich-based chemical gro ...

Read more
Fluor announces changes in executive management

IRVING, US: Fluor Corporation announced that Peter Oosterveer, Fluor’s chief operating officer (COO), will retire from the company effective 31 ...

Read more
TerraVia appoints former president of Pepperidge to its board

SOUTH SAN FRANCISCO, US: TerraVia Holdings Inc said that Irene Chang Britt, former president, Pepperidge Farm has joined TerraVia’s board of dir ...

Read more
Connell Brothers acquires research hub in India

SAN FRANCISCO, US: Connell Brothers Company (India) Pvt Ltd, a division of Connell Brothers Company (CBC) has acquired the assets of The Topical Lab l ...

Read more
www.worldofchemicals.com uses cookies to ensure that we give you the best experience on our website. By using this site, you agree to our Privacy Policy and our Terms of Use. X