ExxonMobil to Acquire 25% in Mozambique’s Area 4
From ARIMANDO DOMINGUES in Maputo, Mozambique
MAPUTO, (CAJ News) – ExxonMobil and Eni have signed a sale and purchase agreement to enable ExxonMobil acquire a 25 percent indirect interest in the natural gas-rich Area 4 block, offshore Mozambique.
Eni 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.
The agreed terms include a cash price of approximately $2,8 billion.
The acquisition will be completed following satisfaction of a number of conditions precedent, including clearance from Mozambican and other regulatory authorities.
Eni Chief Executive Officer Claudio Descalzi, said the deal represented material evidence of our exploration strategy based on the early monetization of our exploration discoveries, as a part of their ‘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, technical and financial robustness of the entire project,” said Descalzi.
Darren Woods, Chairman and CEO of ExxonMobil, said the asset was a major addition to the company’s global development portfolio.
Following completion of the transaction, Eni East Africa S.p.A. will be co-owned by Eni (35,7 percent), ExxonMobil (35,7 percent) and CNPC (28.6 percent). The remaining interests in Area 4 are held by Empresa Nacional de Hidrocarbonetos de Mozambique E.P. (ENH, 10 percent), Kogas (10 percent) and Galp Energia (10 percent).
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.
– CAJ News
Short URL: http://cajnewsafrica.com/?p=18640