Exxon Mobil, ENI ink deal in Mozambique
17 March, 2017
Texas-based Exxon Mobil is to buy 25% of a liquefied natural gas project off Mozambique from Italy’s Eni for about $2.8bn, the two big companies announced. So far, ENI had a 50% stake in offshore Area 4. The concession, where Eni discovered gas in 2011, holds an estimated at 85 trillion cubic feet of the fuel. Exxon’s purchase price represents a 47% discount to what China National Petroleum paid for one-fifth of the asset in 2013, Bloomberg notes.
Darren W. Woods, chairman and CEO of ExxonMobil (pictured) said the asset is a major addition to the company’s global development portfolio. Exxon’s involvement could accelerate the development of one of the world’s largest liquefied natural gas projects as oil majors increase their focus on the cleaner fuel, considered a bridge to a low-carbon future. While Eni will continue to operate the Coral floating LNG project and all the subsea wells and pipelines in Area 4, Exxon will lead the construction and operation of onshore liquefaction facilities. Production of LNG is due to begin in 2022. An agreement has already been reached under which all the gas produced from the FLNG plant will be sold to the British company BP over a twenty-year period.