ExxonMobil to acquire 25% interest in Mozambique natgas block from Eni

IRVING, Texas -- ExxonMobil and Eni have signed a sale and purchase agreement to enable ExxonMobil to acquire from Eni a 25% indirect interest in the natural gas-rich Area 4 block, offshore Mozambique. Eni currently holds a 50% indirect share in the block through a 71.4% stake in Eni East Africa, which owns 70% of the Area 4 concession.

Photo Courtesy of Reuters.

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.

“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,” said Eni Chief Executive Officer Claudio Descalzi. “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.”

Darren W. Woods, chairman and chief executive officer of ExxonMobil, said the asset is a major addition to the company’s global development portfolio.

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.

Following completion of the transaction, Eni East Africa S.p.A. will be co-owned by Eni (35.7%), ExxonMobil (35.7%) and CNPC (28.6%). The remaining interests in Area 4 are held by Empresa Nacional de Hidrocarbonetos de Mozambique E.P. (ENH, 10%), Kogas (10%) and Galp Energia (10%).

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