Eni, CNPC Ink Mozambique Gas, China Shale Deal

Eni and Petrochina, controlled by CNPC, have signed an agreement where the Italian firm will sell 28.6% in its East Africa shares, owner of the 70% interest in Area 4, in Mozambique. Price agreed is equal to $4,21 billion.

After this deal, CNPC indirectly acquires a 20% stake in Area 4, while Eni remains the owner of 50%. The remaining shares in the Area are held by Empresa Nacional de Hidrocarbonetos de Mocambique (ENH, 10%), Kogas (10%) and Galp Energia (10%).

CNPC’s entrance into Area 4 is strategically important for the project thanks to the worldwide relevance of the new partner in the upstream and downstream sectors, Eni said in a statement.

The two parties have also signed a Joint Study Agreement for cooperation for the development of the Rongchang shale gas block, which covers about 2,000 square kilometers in the Sichuan Basin in China.

This area has already been de-risked by research activities and production tests carried out in nearby blocks and has proven to be the most promising in the country to date, Eni said.

The agreement will allow for the study of the area which will be conducted simultaneously with the negotiations for the signing of the Production Sharing Agreement.