President Daniel Chapo said on Friday (17) that the Government remains willing to engage in dialogue with Galp, despite the Portuguese energy company having initiated international arbitration over the tax dispute concerning Rovuma Area 4.
Speaking in Lisbon while reviewing the outcomes of his official visit to Portugal, the Head of State responded to journalists’ questions regarding Galp’s decision to take the case to the International Centre for Settlement of Investment Disputes (ICSID). He reiterated that Mozambique respects the company’s right to seek international arbitration but believes that dialogue remains the best way to resolve the dispute.
“The Government of the Republic of Mozambique is a state governed by the rule of law, which respects the law and the decisions of institutions. As Galp has the right to submit this dispute to the Arbitration Tribunal, we must respect that decision and await the outcome,” Daniel Chapo said.
The President added that the ICSID proceedings do not prevent ongoing discussions between the parties and assured that the Government remains open to reaching a negotiated settlement, provided there are sufficient grounds to resolve the tax dispute.
“We remain available. If there are grounds that can convince the Mozambican Government that there is no reason for this dispute, we believe it is possible to continue the dialogue while the arbitration process, which Galp has every right to pursue, is underway,” he stated.
On 11 July, Galp filed for international arbitration with ICSID, the World Bank Group institution specialising in investment disputes between investors and states, challenging the tax treatment applied to the sale of its 10% stake in Rovuma Basin Area 4 to the Abu Dhabi National Oil Company (ADNOC), the state-owned oil company of the United Arab Emirates.
According to Lusa, the Mozambique Tax Authority is seeking approximately US$175.9 million in taxes related to the transaction.
Before the arbitration request was filed, Daniel Chapo had already advocated a negotiated solution to the dispute. On Wednesday, during the President’s official visit to Portugal, Portuguese President António José Seguro also expressed his hope that the matter would be resolved “through dialogue and the rule of law.”
Regarding the results of the official visit, Daniel Chapo said Portugal had reaffirmed the availability of the €500 million credit line announced in December 2025 to support Portuguese companies operating in Mozambique, adding that the projects submitted by the Mozambican Government are already under review by the Portuguese authorities.
On labour mobility, the President revealed that around 1,500 Mozambican workers have already travelled to Portugal under the bilateral labour migration agreement, through the National Employment Institute and private recruitment agencies.
Daniel Chapo also announced that the Government intends to negotiate a specific agreement with Portugal to facilitate the recruitment of Mozambican professionals for the security sector, following concerns raised by the Mozambican community living in Portugal.
“During the meeting with the community, we heard those concerns and committed ourselves to working towards a specific agreement in the security sector as well,” he said.
The President also urged young people to use only official recruitment channels, warning against the risks of travelling based on informal job offers. He stressed that workers recruited through the National Employment Institute travel to Portugal with signed employment contracts, insurance coverage and all employment conditions agreed in advance.
Source: Diário Económico
