ITALY’S ENI COMPLETES SALE OF 25 PCT STAKE IN ITS MOZAMBICAN GAS FIELD TO EXXONMOBIL

MAPUTO, Italian energy company ENI says it has completed the sale of half of its holding in the gas field in Area Four of the Rovuma Basin, off the coast of the northern Mozambican province of Cabo Delgado, to the American oil and gas giant, ExxonMobil.

The sale was agreed in March, and ExxonMobil agreed to pay ENI 2.8 billion US dollars for the 25 per cent stake. ENI should now pay the Mozambican government capital gains tax of 350 million USD.

The ENI subsidiary, ENI-East Africa, owns 70 per cent of Rovuma Basin Area Four. With the concluded sale to ExxonMobil, there are three partners in ENI-East Africa, which is now to be renamed Mozambique Rovuma Venture — ENI (25 per cent of Area Four), ExxonMobil (25 per cent), and China National Petroleum Corporation (20 per cent).

The remaining 30 per cent is held by Kogas of South Korea, Galp Energia of Portugal and Mozambique’s National Hydrocarbon Company (ENH), each with 10 per cent.

ENI remains the operator of Area Four and will continue to lead the consortium building a Floating Liquefied Natural Gas (FLNG) platform above the Coral South gas field, and all upstream operations in Area Four.

However, ExxonMobil will lead the construction and operation of all future onshore natural gas liquefaction and related facilities. According to the ENI statement: This operating model will enable the use of best practices and capabilities between ENI and ExxonMobil, with each company focusing on distinct and clearly defined scopes while preserving the benefits of fully integrated projects.”

The final investment decision for the Coral South FLNG Project was made in May 2017. ENI points out that this was just three years after the drilling of the final exploration well, in a country that is a newcomer to the global gas market.

The discoveries in the deep waters of Area Four, about 40 kilometres off the Mozambican coast, contain an estimated 85 trillion cubic feet of natural gas. ENI believes that Mozambique is well positioned to supply LNG customers around the world for the next 40 years and beyond.

Source: NAM NEWS NETWORK