ExxonMobil has signed an agreement to acquire a 25% indirect interest in the natural gas-rich Area 4 block in offshore Mozambique from Eni.

Currently, Eni owns 50% indirect interest in the block through a 71.4% stake in Eni East Africa, which owns 70% of the Area 4 concession.

Related Company Profiles

View all

ExxonMobil will pay approximately $2.8bn as consideration for this acquisition.

The transaction is subject to multiple preceding conditions including the approval from Mozambican and other regulatory authorities.

Eni chief executive officer 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.

See Also:

"Through this strategy, Eni has been able to cash in more than $9bn in the last four years.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

"Moreover, the agreement confirms the world-class quality, production potential, technical and financial robustness of the entire project."

ExxonMobil chairman and chief executive officer Darren W Woods said that the acquired asset will be a major addition to the company’s global development portfolio.

Woods said: "This strategic investment will enable ExxonMobil’s LNG leadership and experience to support development of Mozambique’s abundant natural gas resources.

"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."

"This deal represents material evidence of our exploration strategy based on the early monetisation of our exploration discoveries."

Eni will continue to lead 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. 

After completion of the transaction, Eni East Africa will be co-owned by Eni (35.7%), ExxonMobil (35.7%) and CNPC (28.6%). 

The remaining interests in Area 4 will be  held by Empresa Nacional de Hidrocarbonetos de Mozambique EP (ENH, 10%), Kogas (10%) and Galp Energia(10%).

Natural gas is estimated to be a major fuel source, and Mozambique is well-positioned to supply LNG customers around the world.

The deepwater Area 4 block contains an estimated 85 trillion cubic feet of natural gas.

Image: ExxonMobil to acquire 25% indirect interest in the natural gas-rich Area 4 block, offshore Mozambique from Eni. Photo: courtesy of Eni.