Eni signs farm out agreement with Qatar Petroleum

37600524802 8210c7ce6f zOil firm Eni and Qatar Petroleum have signed a farm-out agreement to allow Qatar Petroleum to acquire a 25.5 per cent participating interest in Block A5-A, offshore Mozambique

Eni stated that the agreement is subject to authorisation from the Mozambique authorities.

Block A5-A, located in the deep waters of the Northern Zambezi Basin, approximately 1,500 km north-east of the capital Maputo, was awarded to Eni following the fifth competitive licensing round launched by the Republic of Mozambique, when the exploration and production concession contract was signed in October 2018.

It extends over an area of 5,133 km2 in water depth between 300 and 1,800 meters, in a completely unexplored zone in front of the town of Angoche.

Eni is the operator of Block A5-A Consortium, with a participating share of 59.5 per cent, owned by its subsidiary Eni Mozambico, which would be reduced to 34 per cent after approval of the farm out. Other partners are Sasol, with 25.5 per cent, and the Mozambique state-owned company Empresa Nacional de Hidrocarbonetos (ENH), with 15 per cent.

Eni CEO Claudio Descalzi said, “The transaction represents another milestone in the strategic path that Eni and QP undertook to further strengthen their partnership worldwide.”

Eni has been present in Mozambique since 2006, following the acquisition of Petroleum Contract Area four in the offshore Rovuma Basin, in the north of the country, where the total gas in place is estimated to exceed 85 TCF, following a very successful exploration campaign, with the discoveries of Coral, Mamba and Agulha.

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