Mozambique Oil & Gas: Government authorizes ENI stake sale to Exxon Mobil

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The Mozambican Cabinet approved yesterday, September 5, the necessary amendments to the concession contract for natural gas exploration in area 4 of the Rovuma Basin, authorizing the sale of part of ENI’s stake in Exxon Mobil.

The oil business was announced in March, subject to the approval of Mozambican regulators and other legal procedures, such as yesterday’s ruling.

Exxon Mobil is a large company with technical competence, including gas liquefaction operations and financial robustness, ” said the Minister of Natural Resources and Energy, Leticia Klemens.

The governor confirmed that the Mozambican state expects to raise until the end of the year 354.4 million US dollars in the taxation of capital gains of the transaction, as announced in March.

Offshore exploration of natural gas in Rovuma Basin Area 4, northern Mozambique, is delivered to a consortium made up of Eni East Africa with 70% and Galp, Empresa Nacional de Hidrocarbonetos (ENH) of Mozambique and Kogas (Korea South) with 10% each.

The transaction, currently authorized, changes the composition of Eni East Africa, held by 28.6% by China’s CNPC and 71.4% by Italy’s ENI, which delivers half (37.5%) to Exxon Mobil for 2.8 billion of dollars.

Once the transaction is completed, the interest in participating in Area 4 will be 25% for Eni and ExxonMobil, 20% for CNPC, while Galp, ENH and Kogas will continue to own 10% each. source: Lusa

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