ExxonMobil $2.8 billion acquisition of 25% stake in Mozambique offshore Area 4

Overview:

• ExxonMobil has acquired a 25% indirect interest in the Area 4 offshore natural gas block in Mozambique from Eni for $2.8 billion.
• Eni currently holds 50% pf the block through a 71.4% stake in Eni East Africa, which owns 70% of the Area 4 concession.
• Following the deal Eni East Africa will be co-owned by Eni (35.7%), ExxonMobil (35.7%) and CNPC (28.6%).
• The deepwater Area 4 block contains an estimated 85 trillion cubic feet of natural gas.
• The rest of the Area 4 concession is held by Empresa Nacional de Hidrocarbonetos de Mozambique (10%), Kogas (10%) and Galp Energia (10%).
• Following the completion of the deal Eni will continue to develop the Coral floating LNG project and all upstream operations in Area 4, while ExxonMobil will lead the construction and operation of natural gas liquefaction facilities onshore.

Sam Duke - Editor