ExxonMobil Agrees to Buy 25% Stake in Mozambique's Area 4 Block
Exxon Mobil Corp. has agreed to acquire a 25 percent indirect interest in offshore Mozambique’s Area 4 block from Eni.
The agreed terms include a cash price of approximately $2.8 billion. The acquisition will be completed following satisfaction of a number of conditions precedent, including clearance from Mozambican and other regulatory authorities.
Eni currently holds a 50 percent indirect share in the block through a 71.4 percent stake in Eni East Africa, which owns 70 percent of the Area 4 concession.
“This strategic investment will enable ExxonMobil’s LNG leadership and experience to support development of Mozambique’s abundant natural gas resources,” Darren W. Woods, chairman and chief executive officer of ExxonMobil, said.
“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,” he added.
Following completion of the transaction, Eni East Africa S.p.A. will be co-owned by Eni (35.7 percent), ExxonMobil (35.7 percent) and CNPC (28.6 percent). The remaining interests in Area 4 are held by Empresa Nacional de Hidrocarbonetos de Mozambique E.P. (ENH, 10 percent), Kogas (10 percent) and Galp Energia (10 percent).
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