Italian group ENI wants to reduce stake in oil block in Mozambique

1 June 2015

Talks between Italian group ENI and the China Huadian Corporation to sell a 15 percent portion of the Area 4 block in Mozambique are dragging due to differences of opinion about price, according to the Reuters news agency.

The agency, citing industrial and banking sources said that the Italian group intends to raise US$8 billion over the next five years by selling assets in Mozambique, Congo and Ghana to finance growth in new markets and help maintain the value of dividends.

The group intends to reduce the 50 percent controlling stake it owns in that block in the Rovuma Basin, in northern Mozambique, but its insistence to remain as operator prevents the entry of major global groups that want to control the big projects they are involved in.

One of the sources cited said that talks with the China Huadian Corporation had been going on for some time, with other entities interested in buying a stake in an oil block considered to have natural gas reserves of global dimension, with a total of around 85 trillion cubic feet.

About two years ago, the ENI group sold a share of 20 percent in the same block to the China National Petroleum Corporation for US$4.2 billion. (macauhub/CN/MZ)