China purchases Eni East Africa shares worth US$4.21 billion

China purchases Eni East Africa shares worth US4210 millionCNPC will acquire a 20 per cent stake in Area 4 offshore Mozambique. (Image source: J. Stephen Conn/Flickr)Eni has announced the sale of 28.57 per cent of Eni East Africa's shares to the China National Petroleum Corporation (CNPC)

According to Eni, the deal, which is based on a joint study agreement signed by both companies on 14 March 2013, is equal to US$4.21bn.

CNPC will, as part of the agreement, acquire a stake in Eni East Africa, equating to a 20 per cent indirect participation in Area 4 offshore Mozambique.

Eni remains the indirect owner of the 50 per cent participation owned by Eni East Africa, while remaining shares in Area 4 are held by Empresa Nacional de Hidrocarbonetos de Mozambique (ENH, 10 per cent), Kogas (10 per cent) and Galp Energia (10 per cent).

CNPC’s entrance into Area 4 is strategically significant for the project because of the worldwide importance of the company in the upstream and downstream sectors, Eni said.

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