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INP: Regulator Considers Galp’s Exit From Rovuma Basin to Be Normal

INP: Regulator Considers Galp’s Exit From Rovuma Basin to Be Normal

The National Petroleum Institute (INP, the Mozambican regulator for the sector) today considered Galp’s withdrawal from the consortium researching natural gas in the Rovuma basin to be normal, adding that the Portuguese oil company will still have to formally communicate the decision to the authorities.

‘It’s not something extraordinary, concessionaires are free to negotiate directly or indirectly’ about their stakes in consortia, said the president of INP, Nazário Bangalane.

Bangalane was speaking at a press conference following the signing of concession contracts for oil exploration and production between the Mozambican government and the multinational China National Corporation (CNOC).

‘In the meetings we’ve had with Galp, there has been this intention. However, there are procedures. The Portuguese company will officially submit the process to be analysed by the government and then we’ll know the real amounts involved in the operation,’ he continued.

Galp reached an agreement with the United Arab Emirates oil company ADNOC to sell its position in the consortium researching natural gas in the Rovuma basin in Mozambique for almost 600 million euros.

In a statement to the Portuguese Securities Market Commission (CMVM), Galp announced that it will sell its 10% stake in Area 4 in Mozambique, an operation that should be finalised by the end of the year, following its ‘disciplined’ investment strategy.

‘Area 4 includes Coral South FLNG, which has been operating since 2022, as well as onshore developments in the prospective Coral North FLNG and Rovuma LNG, both of which are expected to be approved in 2024/2025,’ the document states.

The company should receive 650 million dollars (around 599 million euros) for its shares and shareholder loans, already net of capital gains taxes.

The agreement also provides for ‘additional contingent payments of 100 million dollars (92 million euros) and 400 million dollars (369 million euros) with the final investment decision of Coral North and Rovuma LNG, respectively’.

Area 4 is operated by Mozambique Rovuma Venture (MRV), a joint venture co-owned by ExxonMobil, Eni and CNPC (China), which holds a 70 per cent stake in the concession contract.

See Also

Galp, Kogas (South Korea) and ENH – Empresa Nacional de Hidrocarbonetos (Mozambique) each have a 10 per cent stake.

Lusa

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