ExxonMobile and Eni agree the purchase of Area 4 block, offshore Mozambique

2010 10 18 10 55 00 Mozambique Maputo MacamoMozambique, on the approach into Maputo. (Image source: Hansueli Krapf/Commons)ExxonMobil and Eni have signed a sale and purchase agreement on 9 March to enable ExxonMobil to acquire from Eni a 25 percent indirect interest in the natural gas-rich Area 4 block, offshore Mozambique 

The agreed terms for the sale and purchase agreement include a cash price of approximately US$2.8bn. The acquisition will be completed subject to satisfaction of a number of conditions precedent, including clearance from Mozambican and other regulatory authorities.

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

Eni Chief Executive Officer Claudio Descalzi said, “This deal represents material evidence of our exploration strategy based on the early monetization of our exploration discoveries, as a part of our "dual-exploration" model. Through this strategy, Eni has been able to cash in more than US$9bn in the last four years. Moreover, the agreement confirms the world class quality, production potential, technical and financial robustness of the entire project.”

Darren W. Woods, chairman and chief executive officer of ExxonMobil, said the asset is a major addition to the company’s global development portfolio.

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

“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.”

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