Exxon Mobil Holdings Corp. has increased its stake in the planned Rovuma liquefied natural gas project in Mozambique to 50%, up from 25%, through a swap with Eni Sp A. Chief Financial Officer Neil Hansen said in an interview that Eni will receive "different properties there in that area" in return.
The Texas oil giant plans to make a final investment decision on the project by the end of the year. The project could become Exxon Mobil's largest-ever operated capital project. The move comes as the war in Iran has upended global LNG supplies, pushing prices into Europe and Asia to near-record highs.
Most of Rovuma LNG's projected output is already under contract. Exxon's larger share signals a commitment to a project that was halted for more than four years due to regional security threats. Hansen said the company is progressing through final steps with the government of Mozambique on plan and development approval, adding, "All that's progressing well."
The project will have the capacity to produce 18.6 million tonnes of LNG per year and could come online in the early 2030s. Exxon Mobil describes it as one of the largest private investments in Mozambique's history.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing