Herbert Smith Freehills has advised China National Petroleum Corporation (CNPC), the parent company of publically-listed PetroChina, on its acquisition of a 28.57% stake in Eni East Africa SpA, a wholly owned subsidiary of Eni SpA, for US$4.2 billion.
Following the completion of this transaction on 26 July 2013, CNPC now holds through Eni East Africa SpA a 20% stake in Mozambique’s Area 4 gas field, located in the Rovuma basin, Mozambique. Herbert Smith Freehills advised on the acquisition, joint venture, competition and tax elements of this transaction.
This is one of the largest M&A transaction featuring an Asian company to be announced in 2013 so far. The transaction also marks the largest investment from a Chinese company in to an overseas natural gas-field and is one of the largest investments by a Chinese company into Africa to date.
The firm’s global transaction team was led by Hong Kong partner David Clinch, with support from London partners Isaac Zailer, Anna Howell and James Quinney. Senior associates Calvin Ho (Hong Kong), Lara Hill (London), Perminder Gainda (London), Alberto Martinazzi (London) and associate Anna Giudice (Beijing), also advised on this transaction.
“With very large volumes of gas found in the Mozambique’s Area 4 gas field and significant global interest in East African gas, this acquisition is a significant transaction for China National Petroleum Corporation and marks the company’s first investment into Mozambique,” said Clinch. “As a complex, new country entry transaction, our client required a team that could provide around the clock support and legal expertise. We are delighted to have supported China National Petroleum Corporation on this important strategic transaction.”
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