Eni, Exxon to Jointly Develop Mozambique Offshore Gas Project

Eni, Exxon to Jointly Develop Mozambique Offshore Gas Project

Italy’s oil and gas giant Eni has reached an agreement with US ExxonMobil to sell its multi-billion dollar stake in the planned offshore liquefied natural gas (LNG) development project in Mozambique, Reuters reported.

According to the deal, Exxon will acquire a minority stake in the onshore LNG export plant to support Eni’s offshore operations in the Area 4 of the gas field. Eni was previously unwilling to sell a large part of its 50% in the concession area with estimated 85tcf of gas.

Eni CEO, Claudio Descalzi, expected that the selling will not exceed 25% of the stake, which has already been raised from initially negotiated 10-15% on offer, Business Finance News informed.

Sources familiar with the matter stated that “the deal is done but won’t be announced for several months at Exxon’s request.”

Previously, in 2013, Eni retailed 20% of the Area 4 license to China’s CNPC for $4.2b.

Exxon is also in talks with Mozambique’s Anadarko Petroleum Corp. over acquiring a stake in the adjacent Area 1 in the offshore gas field in Rovuma Basin, informed Bloomberg.

In 2015, ExxonMobil acquired three offshore exploration blocks in Mozambique, to the south of Eni’s concessions, which has boosted development prospects for the country.


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