ExxonMobil has announced the completion of a transaction by ExxonMobil Development Africa B.V. to acquire a 25 percent indirect interest in Mozambique’s gas-rich Area 4 block from Eni and assume responsibility for midstream operations.
ExxonMobil will lead the construction and operation of all future natural gas liquefaction and related facilities, while Eni will continue to lead the Coral floating LNG project and all upstream operations. The operating model will enable the use of best practices and skills with each company focusing on distinct and clearly defined scopes while preserving the benefits of an integrated project.
“ExxonMobil brings our LNG leadership and experience to support development of Mozambique’s high-quality natural gas resources. We are confident that our project and marketing expertise, coupled with our financial strength, will help grow the value of Mozambique’s energy resources. We will work closely with our partners to develop this world-class resource,” said Darren W. Woods, chairman and chief executive officer.
Just last week Eni, together with its Area 4 Partners, announced that the Coral South FLNG multi-sourced project financing achieved financial close, for a total amount of US$ 4,675,500,000 split in seven facilities including: five Export Credit Agency Covered Loans, one Commercial Bank Direct Loan and a direct loan
Natural gas is projected to be the world’s fastest-growing major fuel source, and Mozambique is well-positioned to supply LNG customers around the world with the deepwater Area 4 block containing an estimated 85 trillion cubic feet of natural gas in place.
ExxonMobil now owns a 35.7 percent interest in Eni East Africa S.p.A. (to be renamed Mozambique Rovuma Venture S.p.A.), which holds a 70 percent interest in Area 4, and is co-owned with Eni (35.7 percent) and CNPC (28.6 percent). The remaining interests in Area 4 are held by Empresa Nacional de Hidrocarbonetos E.P. (10 percent), Kogas (10 percent) and Galp Energia (10 percent).