A Review of the Nigerian Energy Industry

Eni ties up $4.21bn CNPC deal

Scaroni, Eni Boss27 July 2013 – Italian major Eni has finally sealed its monster deal with China National Petroleum Corporation (CNPC) for the sale of a large share in a block off Mozambique.
In March Eni agreed to sell a 20% stake in its giant Area 4 gas field to the Chinese state-owned player for a whopping $4.21 billion.

CNPC is the fifth explorer at the venture after Mozambique’s Empresa Nacional de Hidrocarbonetos (ENH), Korea’s Kogas and Portugal’s Galp Energia, all on 10%. Eni retains a 50% share.

While describing Eni as “sitting comfortable” with its 50% operatorship stake in Area 4, Eni chief executive Paolo Scaroni hinted in March that a further minority partner could yet be added, especially if an offer were to come from a company which would also buy Area 4’s gas.

Eni previously agreed to jointly develop Area 4 with Anadarko’s neighbouring Area 1 field in a liquefied natural gas project set to see a final investment decision in 2014 and first LNG cargoes in 2018.

Eni and CNPC also at the time signed a co-operation agreement to jointly study developing China’s Rongchang shale gas block and on to hold talks on anticipated future production sharing agreement. This agreement will continue, the Italian said on Friday.
*Eoin O’Cinneidi, Upstreamonline

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