Continental Focus, International Reach

ENI Adds Stakes in Mozambican Blocks to Portfolio

Sunday, June 2, 2019

ENI picked up new stakes in Mozambique’s offshore arena. The company acquired rights to explore and develop Blocks A5-B, Z5-C, and Z5-D in the Angoche and Zambezi Basins. The acreage comes through a farm-in agreement, signed with ExxonMobil and authorized by the Mozambican authorities. ENI will gain a 10% stake in all three blocks.

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

Blocks Z5-C and Z5-D cover a total area of 10,205 sq km, at a water depth between 500 and 2,100 meters, in a scarcely explored area facing the delta of the Zambezi River, about 800 km 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%).

ENI holds a 59.9% stake in Block A5-A in the country’s 5th Licensing Round. The block is adjacent to Block A5-B. 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 authorization by the Mozambican authorities.