ExxonMobil to Acquire 25 Percent Interest in Mozambique Area 4 from Eni
March 09 2017 - 6:00AM
Business Wire
ExxonMobil and Eni have signed today a sale and
purchase agreement to enable ExxonMobil to acquire from Eni a 25
percent indirect interest in the natural gas-rich Area 4 block,
offshore Mozambique. Eni currently holds 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.
This Smart News Release features multimedia.
View the full release here:
http://www.businesswire.com/news/home/20170309005553/en/
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.
“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.”
Eni will continue to lead the Coral floating LNG
project and all upstream operations in Area 4,
while ExxonMobil will lead the construction
and operation of natural gas liquefaction facilities
onshore. This operating model will enable the use of best
practices and skills within Eni and ExxonMobil with each
company focusing on distinct and clearly defined scopes
while preserving the benefits of a fully integrated project.
Following completion of the transaction, Eni East Africa
S.p.A. will be co-owned by Eni (35.7 percent), ExxonMobil (35.7
percent) and CNPC (28.6 percent). The remaining interests in
Area 4 are held by Empresa Nacional
de Hidrocarbonetos de Mozambique E.P. (ENH, 10
percent), Kogas (10 percent)
and Galp Energia (10 percent).
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.
The deepwater Area 4 block contains an
estimated 85 trillion cubic feet of natural gas, which
will provide resources for a world-class liquefied natural gas
project, in which the partners expect to invest tens of billions of
dollars, working in close collaboration with the
government and local communities.
About ExxonMobil
ExxonMobil, the largest publicly traded international oil and
gas company, uses technology and innovation to help meet the
world’s growing energy needs. ExxonMobil holds an industry-leading
inventory of resources, is the largest refiner and marketer of
petroleum products, and its chemical company is one of the largest
in the world. For more information, visit www.exxonmobil.com or
follow us on Twitter www.twitter.com/exxonmobil.
About Eni
Eni is an integrated energy company employing more than 34.000
people in 69 countries in the world. Eni engages in oil and natural
gas exploration, field development and production, as well as in
the supply, trading and shipping of natural gas, LNG, electricity
and fuels. Through refineries and chemical plants, Eni processes
crude oil and other oil-based feedstock to produce fuels,
lubricants and chemical products that are supplied to wholesalers
or through retail networks or distributors.
CAUTIONARY STATEMENT: Statements of future events or conditions
in this release are forward-looking statements. Actual future
results, including project plans and schedules, resource
recoveries, cost and performance efficiencies and demand growth
could differ materially due to changes in market conditions
affecting the oil and gas industry or long-term oil and gas price
levels; political or regulatory developments; reservoir
performance; the outcome of future exploration and development
efforts; technical or operating factors; and other factors cited in
under the caption “Factors Affecting Future Results” on the
Investors page of our website at exxonmobil.com. Closing of the
acquisition is subject to satisfaction of conditions precedent
specified in the applicable agreement. References to resources and
quantities of natural gas include amounts that are not yet
classified as proved reserves under SEC definitions but that we
believe will ultimately be produced and moved into the proved
reserve category.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170309005553/en/
For Eni:Press Office: Tel. +39.0252031875 –
+39.0659822030Freephone for shareholders (from Italy):
800940924Freephone for shareholders (from abroad): +800 11
22 34 56Switchboard:
+39-0659821ufficio.stampa@eni.comsegreteriasocietaria.azionisti@eni.cominvestor.relations@eni.comWeb
site: www.eni.comorFor ExxonMobil:Media
Relations, +1-972-444-1107media@exxonmobil.comWeb
site: www.exxonmobil.com
Exxon Mobil (NYSE:XOM)
Historical Stock Chart
From Aug 2024 to Sep 2024
Exxon Mobil (NYSE:XOM)
Historical Stock Chart
From Sep 2023 to Sep 2024