Italian oil and gas group Eni has completed its $4.2billion deal with China’s National Petroleum Corporation CNPC over a share in its Mozambique operation.
The deal sees CNPC take a 28.57% stake in Eni East Africa, which owns a 70% interest in the Area 4 block off the Mozambique coast.
The move sees Eni retain a 50% stake in the block, while Kogas of Korea, Portuguese firm Galp Energia and Empresa Nacional de Hidrocarbonetos de Mozambique all have 10% stakes. CNPC takes a 20% indirect participation in the area.
“CNPC’s entrance into Area 4 is strategically significant for the project because of the worldwide importance of the company in the upstream and downstream sectors,” said Eni in a statement.
The deal comes as Mozambique looks to encourage foreign investment in the country’s fledgling energy industry, after giant gas discoveries in the country in recent years.
Earlier this year Eni confirmed Area 4’s potential at 27trillion cubic feet of gas, after making a new find in the Mamba complex in the area.