ExxonMobil enters Mozambique project

ExxonMobil closed a deal with Eni on Thursday for the acquisition of a 25% stake in the Area 4 block off Mozambique.

The transaction will see ExxonMobil make a cash payment of USD 2.8 billion for an indirect interest in the gas-rich asset, which is 50% owned by Eni. It operates Area 2 through a 71.4% ownership stake in Eni East Africa. The remainder is held by China National Petroleum Corporation (CNPC).

Eni and ExxonMobil will split the Eni East Africa stake, taking 35.7% each. CNPC has 28.6% while Mozambique’s ENH, Korea Gas Corporation and Galp Energia of Portugal hold 10% stakes each.

“This strategic investment will enable ExxonMobil’s LNG leadership and experience to support development of Mozambique’s abundant natural gas resources,” Exxon CEO Darren W. Woods said in a press release.

ExxonMobil will take charge of the onshore construction effort on the gas liquefaction facilities and assume operatorship while Eni will head the Area 4 upstream operations and the Coral FLNG venture.

“This deal represents material evidence of our exploration strategy based on the early monetization of our exploration discoveries, as a part of our ‘dual-exploration’ model. Through this strategy, Eni has been able to cash in more than $9 billion in the last four years,” Claudio Descalzi, Eni’s CEO, was quoted as saying.