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ExxonMobil acquires 25% interest in Area 4 block offshore Mozambique

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ExxonMobil has announced that it has signed a sale and purchase agreement (SPA) with Eni to acquire a 25% indirect interest in the natural gas-rich Area 4 block, offshore Mozambique.

Currently, Eni holds a 50% indirect share in the block through a 71.4% stake in Eni East Africa, which owns 70% of the Area 4 concession. The deepwater Area 4 block contains an estimated 85 trillion ft3 of gas, which will provide resources for an LNG project. The US$2.8 billion acquisition will be completed following the satisfaction of various conditions, including clearance from Mozambican and other regulatory authorities.

The Chief Executive Officer of Eni, Claudio Descalzi, said: “This deal represents material evidence of our exploration strategy based on the early monetisation of our exploration discoveries, as a part of our ‘dual-exploration’ model. Through this strategy, Eni has been able to cash in more than US$9 billion in the last four years. Moreover, the agreement confirms the world class quality, production potential, technical and financial robustness of the entire project.”

The Chairman and Chief Executive Officer of ExxonMobil, Darren W. Woods, added: “This strategic investment will enable ExxonMobil’s LNG leadership and experience to support development of Mozambique’s abundant natural gas resources,” said Woods. “Our industry-leading project execution, advanced technologies, financial strength and marketing capabilities will help deliver reliable, affordable energy to customers and create long-term economic value for the people of Mozambique, project partners and ExxonMobil shareholders.”

Eni will continue to lead the Coral floating LNG (FLNG) project and all upstream operations in Area 4. ExxonMobil, meanwhile, will be responsible for leading the construction and operation of the onshore natural gas liquefaction facilities.

Once the transaction has been completed, Eni East Africa S.p.A. will be co-owned by Eni (35.7%), ExxonMobil (35.7%) and CNPC (28.6%). The remaining interests in Area 4 are held by Empresa Nacional de Hidrocarbonetos de Mozambique E.P. (ENH, 10%), Kogas (10%) and Galp Energia (10%).

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