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7 Pages

CNPC acquires 20% in Mozambique Area 4 for US$4.2 billion

CNPC acquires 20% in Mozambique Area 4 for US$4.2 billion

Report summary

CNPC's entry to East African LNG comes as no surprise: the company has deep pockets, is an LNG buyer, and offers Eni access to China's embryonic shale gas sector (Eni and CNPC also signed a Joint Study Agreement for the Rongchang shale gas block, Sichuan Basin).But the move comes at a cost. Pro-rata, the US$4.2 billion purchase price is in line with PTT's 2012 acquisition of Cove Energy. However, as was the case in the Cove deal, our underlying analysis infers bold assumptions ...

What's included?

This report includes 1 file(s)

  • CNPC acquires 20% in Mozambique Area 4 for US$4.2 billion PDF - 1.06 MB 7 Pages, 4 Tables, 3 Figures


The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
    • Area 4
    • Valuation
    • Key Uncertainties
  • Strategic rationale
    • CNPC
    • Eni
  • Oil & gas pricing and assumptions

In this report there are 7 tables or charts, including:

  • Executive summary
  • Transaction details
    • Wood Mackenzie NPV sensitivities; development scenario, discount rate and LNG price (2013 terms)
    • Transaction details: Table 1
    • Transaction details: Table 2
  • Strategic rationale
    • Production assumptions under 12 Train upside scenario and impact on CNPC overseas production
    • Mozambique Area 1 and Area 4
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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