CEOAFRICA.com gathered from Maputo, the capital city of Mozambique that Italian energy company Eni has agreed to pay $400m (£256m) in capital gains tax to authorities in Mozambique.

Despite recent criticism against government’s huge tax charges being granted foreign energy companies, Eni said the tax payment relates to a deal signed earlier this year with the China National Petroleum Corporation.

The company, sources disclosed, is among several foreign firms exploring for hydrocarbons in Mozambique, where large quantities of natural gas have already been found.

Under the terms of the deal, the Chinese corporation will take a stake in some of Eni's African operations.

Since the conclusion of prolonged civil war in the country, many foreign companies have invested in Mozambique’s oil and gas. This has transformed the country to one of Africa’s frontier economies and model for many of its counterparts in the continent.

Meanwhile, the company is currently planning to assist the government of Mozambique with the construction of a power plant in the north-eastern Cabo Delgado province, a feat which would consolidate its electricity supplies to countries like Malawi, South Africa, and Zimbabwe.