[2019-05-30] ENI Group expands presence in oil exploration in Mozambique

Source: Macauhub

Italian group ENI has expanded its presence in Mozambique with the acquisition of three 10% shares in three oil exploration licenses, according to a statement released on Wednesday in Milan.

The acquisition through subsidiary ENI Mozambico involves marine blocks A5-B, Z5-C and Z5-D, located in deep waters of the Angoche and Zambezi basins.

The group said that the acquisition of a 10% stake in each of the three blocks was carried out under an agreement with ExxonMobil Mozambique Exploration & Production Limitada, a subsidiary of US group ExxonMobil, after approval by the Mozambican authorities.

Block A5-B is located 1,300 kilometres northeast of the capital Maputo, in an unexplored area bordering the town of Angoche, covering an area of 6,080 square kilometres and a depth between 1,800 and 2,500 metres.

The other two blocks cover an area of 10,205 square kilometres, with a depth between 500 and 2,100 metres, in a very little explored area of the Zambezi basin, 800 kilometres northeast of the capital Maputo.

The three blocks, assigned during the 5th auction, are operated by ExxonMobil (40%), in partnership with Mozambican state-owned company Empresa Nacional de Hidrocarbonetos (20%), Rosneft (20%) and Qatar Petroleum (10%).

During that auction, ENI Mozambico was allocated the operation of block A5-A, adjacent to block A5-B, with a 59.5% stake, with Sasol (25.5%) and Empresa Nacional de Hidrocarbonetos as partners, with 15%.

The subsequent sale of a 25.5% stake in that block to Qatar Petroleum, reducing the Italian group’s stake to 34%, requires the approval of the Mozambican authorities.