Exxon Mobil buying Mozambique stake for $2.8 billion

Exxon Mobil said it will pay $2.8 billion to buy into the natural gas-rich acreage offshore of Mozambique from Italy-based Eni.

The deal for a 25 percent stake in the project helps Exxon Mobil enhance its global liquefied natural gas portfolio, and gives Exxon and Eni leading ownership positions, although Eni will continue to serve as the lead operator on the East Africa project.

The play contains an estimated 85 trillion cubic feet of natural gas. Apart from the Mozambique government, other smaller stakeholders include Chinese, Korean and Portuguese players.

New Exxon Mobil Chairman and CEO Darren Woods called the deal a major addition to its global portfolio.

“This strategic investment will enable Exxon Mobil’s LNG leadership and experience to support development of Mozambique’s abundant natural gas resources,” Woods added.

The gas production project is associated with the Eni-led Coral floating LNG project. The goal is to position the project to ship LNG worldwide.

The project is separate from the Mozambique LNG effort led by The Woodlands-based Anadarko Petroleum.