CNPC to buy stake in Eni's gas field offshore Mozambique

China National Petroleum Corp. (CNPC) is acquiring a stake in a natural gas field offshore Mozambique in Area 4 from Eni SPA for $4.2 billion. The companies also signed a joint study agreement covering Rongchang shale gas block in China.

Petrochina Co. Ltd., controlled by CNPC, is acquiring 28.57% of Eni East Africa’s shares. Eni East Africa owned 70% interest in Area 4. With this operation, CNPC indirectly acquires a 20% stake in Area 4, while Eni remains the owner of 50%.

Closing of the CNPC-Eni transaction remains subject to necessary authorizations from Mozambique’s authorities.

The remaining shares in Area 4 are held by Korea Gas Corp. and Galp Energia, each with 10% while Mozambique’s state ENH has 10% carried through the exploration phase (OGJ Online, Feb. 26, 2013).

Eni has said it expects to take a final investment decision on the Mozambique project in 2014. The Mamba Complex in Area 4 is estimated to contain 75 tcf of gas in place.

The joint study agreement involves possible cooperative development of Rongchang shale gas block, which covers about 2,000 sq km in Sichuan basin. The agreement allows for the study of the area while negotiations are being conducted simultaneously for the signing of a production-sharing agreement.

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