By Dimitra DeFotis
ExxonMobil (XOM) said Thursday it would pay Italy’s ENI (E) $2.8 billion in cash for a 25% stake in a deepwater natural gas field off the shore of Mozambique.
Mozambique, on the coast of southeastern Africa, faces the Indian Ocean and Madagascar to the East. It shares borders with a number of nations, including Tanzania and South Africa.
The international Brent price of oil was down another 1% this morning to a recent $52.39 per barrel, while the U.S. benchmark price slipped by 1.6% to $49.45. The United States Oil Fund (USO) moved lower in overnight trading. The First Trust Natural Gas ETF (FCG) also was lower. The combo SPDR S&P Oil & Gas Exploration & Production ETF (XOP) was relatively less weak.
Exxon said in a press release that along with Eni and partners it will invest tens of billions of dollars in the energy field:
The offshore property “contains an estimated 85 trillion cubic feet of natural gas, which will provide resources for a world-class liquefied natural gas project, in which the partners expect to invest tens of billions of dollars …”
On Monday, Exxon said it would invest $20 billion over the next decade to expand refineries and chemicals manufacturing in the U.S. Gulf of Mexico.