Eni acquires rights in three new exploration licenses in Mozambique

Source: press release, 29 May 2019

Eni wins three new exploration licenses, offshore Mozambique
Eni wins three new exploration licenses, offshore Mozambique (illustration: Eni)

Eni, through its subsidiary Eni Mozambico, has acquired rights to explore and develop offshore blocks A5-B, Z5-C and Z5-D, located in the deep waters of Angoche and Zambezi Basins. Through a farm-in agreement, signed with ExxonMobil Moçambique Exploration & Production Limitada (ExxonMobil) and authorised by Mozambican institutions, Eni acquires a 10% stake in the three blocks.

Block A5-B is located about 1,300 kilometres northeast of the capital Maputo, in a completely unexplored area off the city of Angoche. It has an area of 6,080 square kilometres, at a water depth of between 1,800 and 2,500 metres.

Blocks Z5-C and Z5-D cover a total area of 10,205 square kilometres, at a water depth between 500 and 2,100 metres, in a scarcely explored area facing the delta of the Zambezi River, about 800 kilometres to the north-east of the capital Maputo.

The three blocks, assigned under the 5th Licensing Round, are operated by ExxonMobil (40%), in partnership with the Mozambican State company Empresa Nacional de Hidrocarbonetos (ENH, 20%), Rosneft (20%) and Qatar Petroleum (10%).

With this acquisition, Eni further strengthens its presence in Mozambique, a country of strategic importance for the company.

In the 5th Licensing Round, Eni Mozambico was also awarded operatorship of Block A5-A, adjacent to block A5-B, with a 59.5% stake. Other partners are Sasol (25.5%) and ENH (15%). A farm-out agreement enabling Qatar Petroleum to acquire a 25.5% participating interest in Block A5-A, reducing Eni shares to 34%, is pending authorisation by the Mozambican authorities.

Eni has been present in Mozambique since 2006, with the acquisition of a stake in the Area 4, located offshore in the Rovuma basin, in the northern part of the country. From 2011 to 2014, Eni discovered supergiant natural gas resources in the Rovuma basin, in Coral, Mamba and Agulha fields, holding estimated 2,400 billion cubic metres of gas in place.