The Mozambican government reiterated on Wednesday, 15 July, that Galp must pay the taxes claimed by the state in connection with the sale of its stake in Area 4 of the Rovuma Basin, after the Portuguese oil company initiated international arbitration proceedings against Mozambique, according to the Lusa news agency.
“What the government has stated is that the tax must be paid. That is all. It is a right of Mozambicans. This is a national resource and the corresponding tax must be paid,” said Council of Ministers spokesman Inocêncio Impissa, responding to journalists at the end of the cabinet’s weekly meeting in Maputo.
The dispute concerns the tax treatment applied to Galp’s sale of its 10% stake in Area 4 of the Rovuma Basin — one of Mozambique’s flagship natural gas projects — to the Abu Dhabi state oil company ADNOC.
Lusa reported in October 2025 that Mozambique’s Tax Authority was claiming $175.9 million from Galp in relation to that transaction, warning that the amount could increase and that a tax enforcement process was under way.
Impissa acknowledged, however, that international arbitration in the dispute — which he said he had no formal knowledge of — could help bring the parties’ positions closer together. “If necessary, we will bring the positions closer and arbitration is precisely for that. When there are different positions, it is necessary to resort to an arbitrator to analyse the interests at stake, consider the arguments presented, and assess the reasonableness and guarantees of each party,” he said.
Lusa reported on Saturday that Galp had filed for international arbitration in the dispute at the International Centre for Settlement of Investment Disputes (ICSID), a World Bank Group institution specialising in the resolution of disputes between investors and states.
According to information consulted by Lusa on the ICSID website, the arbitration request filed by Galp Energia SGPS, Galp Energia Portugal Holdings B.V., and Galp East Africa B.V. against the Republic of Mozambique was registered on 26 June under case ARB/26/31.
When pressed by journalists at the end of the meeting, Impissa maintained that the matter had not been formally examined or received by the government, and that it should follow other channels.
“This is not even a diplomatic relationship — it is a commercial relationship, and being a commercial relationship, it is dealt with directly at the sector level. In this case, given Galp’s positioning, which must also fall within the framework of its guarantees as an entity,” Impissa said.
“As a body, this document has not yet been presented to the government. However, it does not ignore the possibility of its existence. Therefore, I acknowledge it may indeed exist, but it has not been discussed in session,” he added.
In October, Galp stated that it considered there to be no legal basis for the tax claim and said it was committed to reaching a negotiated solution with the state. “We believe there is no legal basis for this claim. We are very committed to finding a solution with the government,” the company’s co-chief executive João Diogo Silva said at the time.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/07/15/oilgas/executivo-reitera-que-galp-deve-pagar-impostos-pela-venda-da-participacao-na-area-4/
