Mozambican state oil and gas company ENH may sell stake in oil block

7 June 2013

Mozambican state oil and gas company Empresa Nacional de Hidrocarbonetos (ENH) may sell off part of a 15 percent stake it owns in the Area 1 block of the Rovuma basin, in the north of the country, financial news agency Bloomberg reported.

The agency, which cited sources close to the process, noted that the 10 percent stakes that Indian group Videocon Industries and US group Anadarko Petroleum are selling are currently valued at between US$2.5 billion and US$3 billion each.

According to the sources, amongst the companies interested in acquiring part of the stake owned by ENH are Indian groups Oil & Natural Gas Corp. (ONGC) and Oil India Ltd. (OIL) as well as Chinese groups in the sector.

Negotiations are at an initial stage, and it is still possible that ENH will meet the financial commitments it has with the block with a financing agreement rather than moving ahead with a sale.

ENH has a 36.5 percent stake in the block, which is operated by Anadarko Petroleum and has huge natural gas reserves.

Italian group ENI recently sold a 20 percent stake in the Area 4 block to the China National Petroleum Corporation (CNPC), for US$4.21 billion. The deal is now waiting for approval from the Mozambican authorities. (macauhub)