Eni settles Mozambique’s Area 4 sale tax bill

Paolo Scaroni14 August 2013, News Wires – Italy’s Eni is to hand the Mozambique government $400 million in taxes relating to the former’s huge block sale deal recently finalised with China National Petroleum Corporation, CNPC.

The Paolo Scaroni-led oil giant has also promised to build a power plant in the African emerging gas powerhouse following the $4.21 billion deal which was tied up late last month.

Chief executive Scaroni and chief operating officer of exploration and production Claudio Descalzi met with President Armando Guebuza to update the leader on “the progress of ongoing strategic projects” in Mozambique.

As of 23 August, Eni will foot a $400 million tax bill related to the sale of a 20% stake in the giant Area 4 gas field to state-owned CNPC. The Italian remains operator on 50% with Mozambique’s Empresa Nacional de Hidrocarbonetos, ENH, Korea’s Kogas and Portugal’s Galp Energia, all on 10%.

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.

The Italian also agreed with Guebuza to build a power plant in Cabo Delgado province with Eni’s involvement in sustainability initiatives also discussed.

– Upstream

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