Italian energy group Eni and US energy group ExxonMobil have signed a sale and purchase agreement (SPA) to enable ExxonMobil to acquire from Eni a 25% indirect interest in the gas-rich Area 4 block, offshore Mozambique, for a total consideration of approximately US$2.8bn.
Eni currently 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. Following completion of the transaction, Eni East Africa will be co-owned by Eni (35.7%), ExxonMobil (35.7%), CNPC (28.6%), Empresa Nacional de Hidrocarbonetos (ENH, 10%), Kogas (10%) and Galp Energia (10%).
The deepwater Area 4 block contains an estimated 85 tcf (around 2,400 bcm) of gas, which will provide resources for a major LNG project, in which the partners expect to invest tens of billions of dollars. 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. A Floating LNG (FLNG) plant with a capacity of 3.3 Mt/year is under development on the Coral gas field.