ExxonMobil is to acquire from Eni a 25 per cent indirect interest in the natural gas-rich Area 4 block, offshore Mozambique for US$2.8 billion.
Eni currently holds a 50 per cent indirect share in the block through a 71.4 per cent stake in Eni East Africa, which owns 70 per cent 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, “This deal represents material evidence of our exploration strategy based on the early monetisation of our exploration discoveries, as a part of our ‘dual-exploration’ model.”
Darren W. Woods, chairman and chief executive officer of ExxonMobil, said 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 development of Mozambique’s abundant natural gas resources,” said Woods.
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 per cent), ExxonMobil (35.7 percent) and CNPC (28.6 per cent). The remaining interests in Area 4 are held by Empresa Nacional de Hidrocarbonetos de Mozambique E.P. (ENH, 10 percent), Kogas (10 per cent) and Galp Energia (10 per cent).