Italian energy major
) and state controlled China National Petroleum Corporation
("CNPC") are locked in discussions for the proposed sale of a
stake in a Mozambique gas project, as per Bloomberg reports.
The talks between the companies are underway for the past six
months. The deal involves divestment of around 20% stake in
Eni-operated gas block, which could fetch as much as $4 billion.
It is believed that CNPC and a listed arm PetroChina are likely
to be the contenders to the stake in the Mozambique block.
However, both the companies have not revealed any details so far.
Eni has achieved immense success in Area 4 off Mozambique. Apart
from the several high-impact gas discoveries made by the Italian
company, it recently added another 4 trillion cubic feet (Tcf) of
gas in place within the Mamba Complex, in Area 4, offshore
Mozambique. The latest find strengthens Eni's position in the
area and the company intends to make steady progress with the
development plans for this huge gas reserve base.
Lately, PetroChina also emerged as a contestant to farm in a 20%
stake in the Rovuma gas discovery off the country from the US
Anadarko Petroleum Corporation
) and India's Videocon Industries. Other competitors likely to
bid for the deal comprise
) as well as a consortium of
Royal Dutch Shell plc
), India's state-owned Oil & Natural Gas Corporation and Oil
India. The deal is pegged at about $4.5 million.
Mozambique's offshore gas reserves have received a boost from the
recent finds in the region and it is estimated to hold reserves
of about 150 Tcf. A regional liquefied natural gas (LNG)
project as well as discoveries in Area 4 are likely to be
commissioned in 2018, further enhancing the productivity of the
Eni carries a Zacks Rank #4, which is equivalent to a short-term
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