Maputo, 02 Nov (AIM) – The US oil and gas company ExxonMobil has ExxonMobil has raised its working interest in the Rovuma LNG project, in the northern Mozambican province of Cabo Delgado, from 25 to 50 percent after swapping assets with Italy’s Eni.
ExxonMobil is leading the construction and operation of all future natural gas liquefaction and related facilities for the Area 4 deep water block off the Cabo Delgado coast. The project is operated by a joint venture owned by ExxonMobil, the Italian energy company ENI, and CNPC of China.
The $30 billion project is expected to deliver approximately 150 billion dollars in revenues to Mozambican State over its 30-year operating life. The project includes the development of significant offshore gas resources in Area 4 and an onshore LNG facility with a planned production capacity of 18.6 million tonnes of LNG per year.
According to the digital platform “Green Building Africa”, under the deal, Eni gave up its share of the project in exchange for other properties in the region.
Recently, the partners committed 1.1 billion US dollars to long lead subsea and equipment contracts, which keeps the schedule on track for a final investment decision (FID) by the end of 2026 and first commercial operations in 2031.
Industry observers see the stake increase as a strong signal of ExxonMobil’s intent to proceed. By taking on Eni’s share, the company is expanding its future capital exposure, something operators rarely do for projects they plan to delay or abandon. The 1.1 billion dollars in early contracts represents less than four percent of the total cost, but it is money spent ahead of the FID and points towards a positive outcome.
Market conditions also support the case. Global LNG supply remains tight as geopolitical shifts reshape energy trade routes, and buyers in Europe and Asia are seeking secure, long term gas sources.
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