Italian firm ENI has agreed to pony up the $400 million in sales tax to the Mozambican government on the sale of a portion of its stake in Offshore Area 4 to Chinese firm CNPC.
ENI’s sale of nearly 30% of its Mozambican subsidiary to CNPC gives CNPC a 20% stake in its lucrative Area 4 offshore gas field.
The Italian firm is still the operator of Area 4 with a 50% stake.
ENI said it had also agreed to build a 75-MW power plant in Mozambique’s northern Cabo Delgado province, near where its massive natural gas discoveries were made. Its estimated the plant will cost around $75 million to construct.