ExxonMobil (XOM) and Eni (E) have signed a sale and purchase agreement to enable ExxonMobil to acquire from Eni a 25% indirect interest in the natural gas-rich Area 4 block, offshore Mozambique. Eni currently holds a 50% indirect share in the block through a 71.4% stake in Eni East Africa, which owns 70% of the Area 4 concession.

The agreed terms include a cash price of approximately $2.8B. 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, Eni East Africa S.p.A. will be co-owned by Eni, ExxonMobil and CNPC. The remaining interests in Area 4 are held by Empresa Nacional de Hidrocarbonetos de Mozambique E.P., Kogas and Galp Energia.