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Italy's ENI (E +1.9% in Milan) has agreed to sell a 28.6% stake in Eni East Africa to China...

Italy's ENI (E +1.9% in Milan) has agreed to sell a 28.6% stake in Eni East Africa to China National Petroleum Corp. for $4.21B. The deal will enable CNPC to indirectly acquire a 20% holding in the Area 4 natural gas field in Mozambique, after which Eni East Africa will retain a 50% stake in the field. (PR)
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Comments (1)
  • JCLM
    , contributor
    Comments (31) | Send Message
     
    This reflects an interesting structural element in the OIl and Gas industry. The scale of the projects is so huge and the risks so large that even the integrated majors with their strong balance sheets hedge their bets frequently. Anti-trust authorities around the world would have issues with similar arrangements in other industries but it is accepted practice, and correctly so, that is is common practice that the companies in this sector do not so much cpmpete but work together.
    14 Mar 2013, 07:51 AM Reply Like
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