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Eni unit acquires 10% stake in 3 exploration licenses offshore Mozambique

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Eni unit acquires 10% stake in 3 exploration licenses offshore Mozambique

Eni Mozambico SpA, a subsidiary of Eni SpA, acquired a 10% stake and rights to explore and develop three offshore blocks in Mozambique through a farm-in agreement signed with Exxon Mobil Corp. subsidiary ExxonMobil Moçambique Exploration & Production Limitada and authorized by Mozambican institutions, according to a May 29 release.

Block A5-B in the Angoche basin spans an area of 6,080 square kilometers in water depths between 1,800 meters and 2,500 meters while Blocks Z5-C and Z5-D in the Zambezi basin cover an area of 10,205 square kilometers and lie in water depths between 500 meters and 2,100 meters.

The blocks were originally assigned under Mozambique's fifth licensing round held in 2015 and were operated by Exxon with a 60% stake while Empresa Nacional de Hidrocarbonetos EP, or ENH, and Rosneft Oil Co. PJSC each held a 20% interest. However, in December 2018, Qatar Petroleum signed a deal to acquire a 10% stake in the three blocks from an Exxon affiliate for an undisclosed amount. Currently, ownership of the blocks is shared by Exxon, ENH, Rosneft, Qatar Petroleum and Eni, which hold stakes of 40%, 20%, 20%, 10% and 10%, respectively.

In addition, the Eni unit was granted operatorship of Block A5-A, which is adjacent to Block A5-B. Eni Mozambico, Sasol Ltd. and ENH hold stakes of 59.55%, 25.5% and 15%, respectively. However, a farm-in agreement with Qatar Petroleum for 25.5% interest, pending authorization by Mozambican authorities, would reduce Eni's stake to 34%.

According to Eni, the acquisition of the licenses strengthens its presence in the country.