Gulf Oil and Gas accountACCOUNT

ExxonMobil to Acquire 25% Interest in Mozambique Area 4 from Eni

Source: www.gulfoilandgas.com 3/9/2017, Location: Africa

Share |
ExxonMobil and Eni have signed sale and purchase agreement to enable ExxonMobil to acquire from Eni 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, “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. 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.

“This strategic investment will enable ExxonMobil’s LNG leadership and experience to support development of Mozambique’s abundant natural gas resources,” said Woods. “Our industry-leading project execution, advanced technologies, financial strength and marketing capabilities will help deliver reliable, affordable energy to customers and create long-term economic value for the people of Mozambique, project partners and ExxonMobil shareholders.”

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. This operating model will enable the use of best practices and skills within Eni and ExxonMobil with each company focusing on distinct and clearly defined scopes while preserving the benefits of a fully integrated project.

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).

Natural gas is projected to be the world’s fastest-growing major fuel source, and 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.

For more information about related Opportunities and Key Players visit West Africa Projects

Acquisitions and Divestitures News in Mozambique >>

United States >>  8/15/2017 - Whiting Petroleum Corporation has an agreement to sell its Fort Berthold Indian Reservation area assets located in Dunn and McLean Counties, North Dak...
Canada >>  8/9/2017 - Recurrent Energy, a wholly owned subsidiary of Canadian Solar Inc. ("Canadian Solar") (CSIQ), announced that Sempra Renewables LLC, a unit of Sempra E...

United Kingdom >>  8/9/2017 - Parkmead, the UK and Netherlands focused independent oil and gas group, has completed the previously announced acquisition of a 50% interest in the UK...
Tunisia >>  8/2/2017 - OMV, the international integrated oil and gas company based in Vienna, closed the sale of its 50% stake in the Ashtart oil field, an offshore field in...

United States >>  7/31/2017 - RigNet, Inc. has completed the acquisition of substantially all assets of Energy Satellite Services (ESS) in a cash transaction valued at US$22.2 mill...
United States >>  7/31/2017 - ConocoPhillips completed its previously announced transaction with an affiliate of Hilcorp Energy Company to sell its San Juan Basin assets for up to ...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Mozambique Oil & Gas 1 >>  2 | 3 |

Oil & Gas Projects in Mozambique >>

More News

 

Oil & Gas Companies in Mozambique >>


Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Privacy Policy.