CNPC to Buy Into Eni’s Mozambique Assets for $3.75 Bln?

China National Petroleum Corporation is reportedly interested in acquiring a stake in Eni’s  gas reservoirs located in Area 4, offshore Mozambique.

Reuters has quoted an unnamed source from the Italian government claiming that the China’s state-run oil company is in talks with the Italian energy giant over the potential acquisition of interest in Eni’s  gas project off the coast of Mozambique.

It has been further reported that CNPC is eyeing up to a 20% stake in the area, meaning that the Chinese company would need to shell out approximately $3.75 billion.

Eni is the operator of Area 4 with a 70% participating interest. The other partners of the joint venture are Galp Energia (10%), KOGAS (10%) and ENH (10%, carried through the exploration phase).

The Italian oil company on February 25 made a new natural gas discovery within the Mamba Complex, in Area 4, at the Coral 3 delineation well, which is the eighth well drilled back to back in Area 4.

The new discovery confirmed the potential of Area 4 operated by Eni at 75 trillion cubic feet (Tcf) of gas in place of which 27 Tcf exclusively located in Area 4.

Eni is also moving towards the development of its reserves discovered offshore Mozambique. In December last year, the company reached Heads of Agreement (HOA) with Anadarko, establishing foundational principles for the coordinated development of the common natural gas reservoirs spanning both Mozambique’s Offshore Area 1 (operated by Anadarko) and Offshore Area 4 (operated by Eni).

The HOA is designed to facilitate a work program whereby the two operators will conduct separate, yet coordinated, offshore development activities, while jointly planning and constructing common onshore liquefaction facilities in the form of an LNG (liquefied natural gas) park in the Cabo Delgado Province of northern Mozambique.

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Offshore Energy Today Staff, March 8, 2013