The Competition Regulatory Authority (ARC) has approved the sale of Galp’s stake in the natural gas exploration consortium in the Rovuma basin to ADNOC, from the United Arab Emirates, in a deal valued at 41.1 billion meticals (650.4 million dollars), according to Lusa.
In a decision released this Tuesday (20), the ARC clarified that, after an in-depth analysis, the transaction will not have a negative impact on the structure of the natural gas extraction and liquefaction markets, nor on the sale of LNG (liquefied natural gas) on a large scale. The assessment also included consultation with the National Petroleum Institute (INP), which considered the operation to be within the normal range for this type of business.
According to the information, the sale process includes the transfer of exclusive control over Galp Energia Rovuma B.V. to ADNOC International, a wholly-owned subsidiary of the Abu Dhabi National Oil Company (ADNOC). ARC reported that the transaction was submitted to public consultation in June this year, before being approved.
Galp’s divestment is part of a strategy to reorient its investments. The Portuguese oil company is selling its 10 per cent stake in Area 4 of the Rovuma basin, where it operates Mozambique Rovuma Venture (MRV), a joint venture led by ExxonMobil, Eni and CNPC. The sale should be finalised by the end of the year.
In addition to the 41.1 billion meticals agreed for the sale, Galp may also receive additional contingent payments that could reach up to approximately 31.6 billion meticals, depending on the final investment decisions in future projects in the region, such as Coral Norte FLNG and Rovuma LNG.
The president of the INP, Nazário Bangalane, had already stated that Galp’s departure from the consortium was an expected and common move in projects of such scale, emphasising that the concessionaires are free to negotiate their stakes.
