QATAR Petroleum is believed to be interested in taking up stakes in ENI’s Area 4 licence and development project off Mozambique. The move could see Qatar Petroleum, alongside ExxonMobil, acquire some of ENI’s 50 percent stake in Area 4.
Eni is looking to raise $5bn through various asset sales and the reduction of Area 4’s stake could raise a considerable part of the $5billion for the Italian company. Qatar Petroleum was considering Area 5 and Area 1 operated by Anadarko. However, the company seems to have upped its interest in the Eni operated Area 4. While Eni‘s goal is to raise its target $5bn, the cash infusion is likely to considerably reduce the company’s CAPEX call on the project.
The quality of the new partners could also see the project move at a faster pace. Eni could be open to reducing its stake by as much as 25 percent valued at over $1.5bn. The deal is likely to see a form of joint interest acquisition by Exxon and Qatar Petroleum. The state owned company operates all oil and gas assets in Qatar and it’s the world’s third largest oil and gas company by hydrocarbon reserves. Area 4 is estimated to be holding 85Tcf of gas in reserve. Production is expected to commence via a floating vessel in 2021.