Oil & Gas Opinion: “Exxon may bail out government” – by Joseph Hanlon

Exxon Mobil is in advanced negotiations with ENI over acquiring a minority stake in its Mozambique natural gas discoveries off Mozambique, according to Bloomberg (28 July). Exxon is also in talks with Anadarko, and is working with Qatar Petroleum, Bloomberg says.

“Negotiations with government over tax terms and the funding of the Mozambique national gas company have also moved forward in the last two months,” Reuters reported (25 July).

Comment: The deal is vital for the government, because it would generate more than $1 billion in capital gains taxes, which would go a long way to resolving the secret debt crisis. Therefore, Mozambique is probably willing to make longer term tax deals in order to get money up front.

By: Joseph Hanlon