ExxonMobil purchase $2.8 billion interest in offshore Mozambique gas block

ExxonMobil purchase $2.8 billion interest in offshore Mozambique gas block

ExxonMobil (NYSE:XOM) has agreed a purchase agreement with Eni (BIT:ENI) which will see the US oil major take a 25% interest in a gas-rich area off the coast of Mozambique.

The deal for the stake in the offshore Area 4 block includes a cash fee of around US$2.8 billion to be paid to the Italian oil and gas company.

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

Eni currently holds a 50% indirect share in the block through a 71.4% stake in Eni East Africa, which in turn owns 70% of the Area 4 concession.

Darren W. Woods, chairman and chief executive officer of ExxonMobil said: “This strategic investment will enable ExxonMobil’s LNG leadership and experience to support the development of Mozambique’s abundant natural gas resources.”

The world’s largest publicly traded oil and gas firm will lead the construction and operation of natural gas liquefaction facilities onshore in Mozambique.

Meanwhile, Eni will continue to lead the Coral floating LNG project and all upstream operations in Area 4.

@RGNonline