Unic Press UK: Oil giants, Exxon Mobil and Eni, have reached a sale and purchase agreement, allowing Exxon Mobil to acquire a part of Eni’s share in the Area 4 block in Mozambique.
With the signed agreement, Exxon Mobil will acquire only 25 percent indirect interest in the Area 4 block in Mozambique. Hitherto, Eni held a “50 percent indirect share in the block through a 71.4 percent stake in Eni East Africa, which owns 70 percent of the Area 4 concession.”
Area 4 block in Mozambique is enormously endowed with natural gas. No doubt, Exxon Mobil’s deft move to increase its investment in this area is driven by the fact that natural gas is moving towards being the world’s fastest growing source of fuel.
Excerpts from Exxon Mobil on the deal reads:
“The agreed terms include a cash price of approximately $2.8 billion. The acquisition will be completed following satisfaction of a number of conditions precedent, including clearance from Mozambican and other regulatory authorities.
“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 $9 billion 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.” (Exxon Mobil: 9th March 2017)
