Partners approve entry of the ExxonMobil group in the natural gas business in Mozambique

8 November 2017

Mozambican state oil andgas company ENH, Italian group ENI, South Korea’s Kogas and Portugal’s Galp Energia, the concession holders on the Area 4 natural gas block in the Rovuma basin, Mozambique, on Tuesday in Maputo, approved the entry in the consortium of US group Exxon Mobil, according to Mozambican daily newspaper Noticias.

In March of this year the ExxonMobil group acquired a stake of 35.7% in ENI East Africa, a company that acts as operator of the Area 4 block, whose partners are Italian group ENI (35.7%) and the China National Petroleum Corporation (28.6%).

The government of Mozambique authorised the transaction in September changing the stakes in the Area 4 block and ENI and ExxonMobil now have 25% each, the CNPC group has 20% group and Galp Energia, Kogas and Mozambican state oil and gas group ENH have 10% each.

The permission for ExxonMobil’s entry into the project was regarded as essential for the Mozambican state to raise around US$354.4 million from capital gains tax charge to ENI on the transaction.  (macauhub)