Mozambique will gain $350m in capital taxes from Eni after the Italian oil and gas company agreed to sell a stake in a gas field to ExxonMobil Corporation, Reuters reported, citing the Senior Tax Official, Anibal Mbalango.
According to Business Insider, ExxonMobil, the world’s biggest publicly traded oil producer, agreed to buy a 25% stake in Eni’s giant gas field in Mozambique for about $2.8b in early March.
Eni is currently the operator of Mozambique’s Area 4 license, which is one of the world’s largest gas discoveries in recent years with 85tcf of gas.
The deal offers the African country the chance to transform itself from one of the world’s poorest countries into a global liquefied natural (LNG) exporter.
The agreement states that Eni will continue to lead all upstream operations in the area, while ExxonMobil will be in charge of building the onshore LNG gas plants. Eni will remain in charge of building the floating LNG plant in the Coral field, which is part of Area 4.