ExxonMobil Group completes purchase of stake in natural gas block in Mozambique

14 December 2017

ExxonMobil Development Africa B.V. has completed the purchase of an indirect 25% stake in the Area 4 block located in the Rovuma basin in northern Mozambique from Italian group ENI, US group ExxonMobil and ENI said in separate statements.

Under the terms of the purchase agreement signed by the two companies, the US group will take over the construction and operation of all facilities related to natural gas liquefaction, while the Italian group will continue to lead the floating platform Coral Sul project as well as upstream operations.

The US group now owns a 35.7% stake in ENI East Africa (whose name will be changed to Mozambique Rovuma Venture) which holds a 70% stake in the Area 4 block, whose remaining shareholders are the ENI group, with 35.7% and China National Petroleum Corporation (CNPC) with the remaining 28.6%.

These three groups have Mozambican state-owned Empresa Nacional de Hidrocarbonetos (ENH), Portuguese group Galp Energia and South Korea’s Kogas as partners, all with 10% each.

The statement released by the ENI group recalls that ExxonMobil group agreed to pay US$2.8 billion for the stake.

Area 4 contains natural gas deposits estimated at 85 trillion cubic feet (2.4 billion cubic metres), which would supply consumers all over the world for more than 40 years. (macauhub)