Exxon Mobil Corp. is currently holding discussions with Eni SpA for the acquisition of interests in the Mozambique’s Area 4 offshore natural gas development project.

According to Wall Street Journal, the terms of the agreement have not been defined but sources say that Exxon is negotiating to purchase about 20% interest from Eni’s, 50%. The acquisition could be announced in coming weeks,

The Area 4 offshore development which entails separate giant natural gas discoveries in the Indian Ocean, is estimated to turn into a key international supplier of liquefied natural gas (LNG). Eni had said that the project might contain 85 tcf of gas, estimating it to hold an adequate amount of gas to feed U.S’ residential consumption for about 20 years.

Eni and Anadarko Petroleum Corp. made the new finds in the area and in 2015 decided to direct development that might probably cost tens of billions of dollars.

Anadarko has no interest in Area 4 but holds a 26.5% working interest in Area 1, which is not part of the deal currently under discussion between Eni and Exxon Mobil. Area 1 can hold about 75 tcf of gas.

Exxon’s acquisition of interest in Area 4, can be a helping hand for Eni as it plans to make the find viable. As a matter of fact, Exxon is willing to become an operator in the development.

Anita Fatunji