Chinese state group CNPC plans to enter oil exploration sector in Mozambique

8 March 2013

Italian group ENI is negotiating with the China National Petroleum Corporation (CNPC) for the sale of a stake in an oil block in Mozambique where large natural gas deposits have been found, financial news agency Bloomberg reported.

The talks have been underway for over six months and are for the sale of 20 percent of the 70 percent stake owned by the Italian group in the Area 4 block of the Rovuma basin, in northern Mozambique, next to the Tanzanian border.

At the end of February the ENI group announced it had found over 4 trillion cubic feet of gas in the block, in which its partners are Portuguese group Galp Energia, South Korea’s Kogas and Mozambican state oil and gas company, Empresa Nacional de Hidrocarbonetos (ENH) each with 10 percent.

The deal may be worth up to US$4 billion (the sale of the 8.5 percent stake owned by Irish company Cove Energy in a nearby block cost Thai state company PTT US$1.9 billion) and Bloomberg said that a listed company from the PetroChina may compete with CNPC to buy the 20 percent stake. (macauhub)