CNPC completes buy of stake off Mozambique

China National Petroleum Corp. has completed its purchase from Eni SPA of a 20% indirect participation in Area 4 offshore Mozambique, where the Italian company is considering development of its Mamba Complex natural gas discoveries (OGJ Online, Mar. 14, 2013).

CNPC acquired the interest through the purchase for $4.21 billion of a 28.57% stake in Eni East Africa, which held a 70% interest in Area 4 before the deal.

Eni remains the indirect owner of the 50% participation in Area 4 owned by Eni East Africa. Other interests in the block are Empresa Nacional de Hidrocarbonetos de Mozambique, Kogas, and Galp Energia, 10% each.

Eni estimates gas in place at the Mamba Complex at 75 tcf (OGJ Online, Feb. 26, 2013).

Under the purchase agreement, CNPC and Eni also will jointly study the Rongchang shale gas in the Sichuan basin of China.