Exxon is following the LNG momentum with a $2.8bln acquisition from Eni

ExxonMobil and Eni have signed a s&p agreement in which ExxonMobil will acquire from Eni a 25% 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% of the Area 4 concession.
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 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, the new balance in Area 4 is the following: Eni East Africa S.p.A. will be co-owned by Eni (35.7%), ExxonMobil (35.7%) and CNPC (28.6%). The remaining interests in Area 4 are held by Empresa Nacional de Hidrocarbonetos de Mozambique E.P. (ENH, 10%), Kogas (10%) and Galp Energia (10%).
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.