Eni to build Mozambique LNG plant with CNPC sharing cost


Eni to build Mozambique LNG plant with CNPC sharing cost


LONDON -- Eni has the expertise to build a liquefied natural gas plant in Mozambique that will allow the large find in the East African country to be shipped to energy-hungry Asian countries, said the head of exploration and production.

China National Petroleum Corp. will share in the costs to build the LNG plant in Mozambique after it signed a deal to buy a 20% stake in Eni's massive offshore gas field, Eni's Claudio Descalzi told reporters at a conference in London to present Eni's 2013-16 growth plan.

Earlier, Eni said it agreed to sell the 20% stake to CNPC for $4.21 billion, in a deal that will leave it with a 50% stake in the Area 4 field. The Rome-based company is open to reducing its stake further in the field if a deal will give greater solidity to the project, said Chief Executive Paolo Scaroni at the same conference.

The maximum tax amount that Mozambique will take on the CNPC sale price is 10%, said Mr. Descalzi when asked by an analyst. Mr. Descalzi also said he wasn't aware of Mozambique officials wanting a bigger share of the price it will receive from the Chinese company.

Dow Jones Newswires

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