Exxon Mobil has increased its stake in the Mozambique gas project through an asset swap with Eni, Bloomberg reported on Friday. The terms of the swap, including which assets Exxon gave up and the size of its increased position, were not disclosed in the reporting, and neither company had issued a statement when this story was written.
The project at issue is the Area 4 Rovuma development offshore northern Mozambique. Mozambique Rovuma Venture, the joint venture of Exxon, Eni and China’s CNPC, holds 70 percent of the Area 4 concession, with the remaining interests held by XRG, Kogas and state company Empresa Nacional de Hidrocarbonetos at 10 percent each. Exxon leads construction and operation of the liquefaction facilities, while Eni leads the upstream work.
Rovuma LNG is designed at about 18.6 million tonnes a year and remains pre final investment decision, years after its development plan was approved in 2019. Early engineering work continues: in September, Saipem and Jan De Nul signed a letter of intent with ExxonMobil Mocambique for early engineering and procurement services on phase one, contingent on a positive investment decision and government approvals.
An asset swap that enlarges Exxon’s position without a disclosed cash price suggests both majors are reshuffling portfolios around the project rather than exiting it. Confirmation and terms will need to come from the companies.