Oil and Gas

Eni talking to Mozambique gas field buyer but no deal yet

MILAN, Oct 20 (Reuters) - Italian oil and gas group Eni confirmed on Thursday it was in talks with a buyer for a stake in its Area 4 gas field in Mozambique but said a deal had not yet been reached.

Italian broker Equita said in a note to clients earlier on Thursday that according to the chairman of Mozambique energy company ENH Eni had sold a majority stake and the operatorship in Area 4 to Exxon Mobil.

“Talks with a potential buyer are ongoing. However a deal has not yet been finalised,” an Eni spokesman said.

State-controlled Eni, which owns 50 percent of Area 4, had previously said it was ready to sell up to 25 percent as part of a disposal programme to help fund growth.

In August sources said it had wrapped up talks to sell a multi-billion dollar stake in the field to Exxon, adding the deal would not be announced for several months at Exxon’s request.

Reporting by Stephen Jewkes