LNG markets are at the crossroads-V: Recent Exxon-Mobil deal in Mozambique halves the value of OVL-OIL's $ 5 billion investment
Mar 14: Exxon Mobil Corp. said it will buy 25 percent of a liquefied natural gas project off Mozambique from Italy’sEni SpAfor about $2.8 billion as the U.S. oil giant expands its worldwide LNG footprint. 8Exxon will buy half of Eni’s 50 percent stake in offshore Area 4, the Irving, Texas-based explorer said in astatementon Thursday. The concession, where Eni discovered gas in 2011, holds an estimated at 85 trillion cubic feet of the fuel. 8Exxon’s purchase price represents a 47 percent discount to what China National Petroleum Corp. paid for one-fifth of the asset in 2013 8This was around the same time that OVL and Oil India Ltd paid a massive $ 5 billion to pick up a 20% stake in the Rovuma Area-1 adjacent to the ENI block. the block has an estimated 65 tcf of gas. This price tag is a little higher than what CNPC had paid for 8Using a rough yardstick, the value of the $5 billion stake is significantly lower now, possibly at half of the original price tag. 8A subsidiary of BPCL also has a 10% stake in the block but that was at a much lower price. Click on Details for more