The Italian energy company ENI has said it is “within weeks” of finalising a deal worth billions of dollars to sell a stake in its operations in the Rovuma Basin, off the coast of northern Mozambique, according to a report in the “Financial Times”.
ENI chief executive Claudio Descalzi told the paper that the transaction was “very close” but declined to comment on the identity of the buyer.
However, it is no secret that ENI has been in lengthy negotiations with the US company ExxonMobil, and last October the chairperson of Mozambique’s National Hydrocarbon Company (ENH), Omar Mitha, told the Maputo daily “Noticias” that ExxonMobil would become a partner of ENI in offshore area four of the Rovuma Basin.
Massimo Bonisoli, an analyst at the debt recovery company Equita, cited by the “Financial Times” estimated the sale of a 20 per cent stake in Area 4 could raise US$1.79 billion for ENI, with the potential for this to rise to as much as US$2.63 billion should the Italian group eventually hand over operational control to the buyer. This is of enormous interest to Mozambique, because of the huge amount of capital gains tax that would be paid on such a transaction.
ENI controls a 50 per cent indirect interest in Offshore Area Four owned through ENI-East Africa, which holds 70 per cent of the concession. The other 20 per cent held via ENI-East Africa belongs to the Chinese company CNPC. The other three partners, with ten per cent each, are Galp Energia of Portugal, Kogas, and Mozambique’s National Hydrocarbon Company (ENH).
Plans are advanced to set up a floating liquefied natural gas (FLNG) facility in Area Four above the Coral South gas field. So far, the consortium has invested about US$2.8 billion in Area Four, and it is estimated that the FLNG project will cost a further eight billion dollars.
Production of LNG is due to begin in 2022. However, the Final Investment Decision cannot take place until CNPC formerly commits itself to the investment (all the other partners have now approved their share of the investment).
An agreement has already been reached under which all the gas produced from the FLNG plant will be sold to the British company BP over a twenty year period.
The total gas discovered in Area Four is 85 trillion cubic feet. Neighbouring Area One, where the US company Anadarko is the operator, holds an estimated 75 trillion cubic feet of gas. Anadarko is planning to build an onshore LNG facility to produce 12 million tonnes of LNG a year. Later it hopes to raise production to 20 million tonnes a year. However, Anadarko is at least a year behind ENI in the race to deliver LNG to the market.
Source: AIM
ENI chief executive Claudio Descalzi told the paper that the transaction was “very close” but declined to comment on the identity of the buyer.
However, it is no secret that ENI has been in lengthy negotiations with the US company ExxonMobil, and last October the chairperson of Mozambique’s National Hydrocarbon Company (ENH), Omar Mitha, told the Maputo daily “Noticias” that ExxonMobil would become a partner of ENI in offshore area four of the Rovuma Basin.
Massimo Bonisoli, an analyst at the debt recovery company Equita, cited by the “Financial Times” estimated the sale of a 20 per cent stake in Area 4 could raise US$1.79 billion for ENI, with the potential for this to rise to as much as US$2.63 billion should the Italian group eventually hand over operational control to the buyer. This is of enormous interest to Mozambique, because of the huge amount of capital gains tax that would be paid on such a transaction.
ENI controls a 50 per cent indirect interest in Offshore Area Four owned through ENI-East Africa, which holds 70 per cent of the concession. The other 20 per cent held via ENI-East Africa belongs to the Chinese company CNPC. The other three partners, with ten per cent each, are Galp Energia of Portugal, Kogas, and Mozambique’s National Hydrocarbon Company (ENH).
Plans are advanced to set up a floating liquefied natural gas (FLNG) facility in Area Four above the Coral South gas field. So far, the consortium has invested about US$2.8 billion in Area Four, and it is estimated that the FLNG project will cost a further eight billion dollars.
Production of LNG is due to begin in 2022. However, the Final Investment Decision cannot take place until CNPC formerly commits itself to the investment (all the other partners have now approved their share of the investment).
An agreement has already been reached under which all the gas produced from the FLNG plant will be sold to the British company BP over a twenty year period.
The total gas discovered in Area Four is 85 trillion cubic feet. Neighbouring Area One, where the US company Anadarko is the operator, holds an estimated 75 trillion cubic feet of gas. Anadarko is planning to build an onshore LNG facility to produce 12 million tonnes of LNG a year. Later it hopes to raise production to 20 million tonnes a year. However, Anadarko is at least a year behind ENI in the race to deliver LNG to the market.
Source: AIM
posted from Bloggeroid
No comments:
Post a Comment
What do you think 🤔?