CNPC in talks to buy Eni's part stake in a Mozambique gas project: report

China National Petroleum Corp (CNPC), the country's biggest oil company, is in talks with Italian oil giant Eni SpA to buy a part of its stake in a Mozambique gas project for $4 billion, Bloomberg yesterday reported, citing two people with knowledge of the matter.

Eni, Italy's largest oil company, which is the operator with 70-per cent stake in the Mamba Complex, in Area 4 gas block in Rovuma Basin in Mozambique, may sell 20 per cent stake in the block to CNPC to share the cost of developing the project, the report said.

The companies have been in discussions for at least six months and final terms have yet to be agreed upon, the report added.

Other stakeholders in Area 4 are Portuguese gas company Galp Energia, Japan's Kogas and Mozambique national oil company Empressa Nacional de Hidrocarbonetos EP (ENH EP), each holding 10 per cent stake.

A completed deal would be the biggest overseas investment made by CNPC or its listed unit PetroChina, according to data compiled by Bloomberg.

With three discoveries, Area 4 is estimated to hold 70 trillion cubic feet (tcf) plus of high quality natural gas.