Mozambique to Allow Eni to Sell Stake in Area 4 Gas Field

Mozambique has indicated it would be ready to give a go ahead to Eni’s move to reduce its stake in Area 4 natural gas field.

The issue was discussed when President of Mozambique, Armando Guebuza, and Eni’s CEO, Paolo Scaroni, met in Bruxelles on Wednesday.

“The possibility of enlarging the shareholder base of Area 4 was favourably received by the President, as this would further strengthen the project,” Eni said in a statement.

Eni is the operator of the Area 4 with an indirect 50% participating interest, owned by Eni East Africa, which holds 70% stake in the field. It sold 20% stake to CNPC for $4 billion.

News agency Reuters reports that Eni had hired Bank of America Merrill Lynch to advise on the sale of a stake of about 15 percent in the field which could raise up to $5 billion.

The Italian firm said 11 wells have been completed and it will drill two additional wells in 2014.

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