Exxon buys 25% stake in Mozambique block from Eni for $2.8 billion

Exxon Mobil Corp. said it will buy a 25 percent stake in a project off Mozambique from Italy’s Eni SpA for about $2.8 billion as the U.S. oil giant expands in natural gas.

Eni will continue to lead the Coral floating liquefied natural gas project and all upstream operations in Area 4 while ExxonMobil will lead the construction and operation of gas liquefaction facilities onshore, Exxon said in a statement Thursday. The purchase will be completed after a number of conditions are passed, notably clearance from the authorities in Mozambique.

“This strategic investment will enable Exxon Mobil’s LNG leadership and experience to support development of Mozambique’s abundant natural gas resources,” Chief Executive Officer Darren W. Woods said in the statement.

 The U.S. oil major’s participation will potentially accelerate development of one of the world’s largest LNG projects. Former Exxon CEO Rex Tillerson discussed plans to buy into Eni’s assets with Mozambique President Filipe Nyusi in July.