The Mozambican Ministry of Mineral Resources and Energy has announced that the partners of Area 4 of the Rovuma basin, off the coast of the northern Mozambican province of Cabo Delgado, may change, since the Portuguese oil and gas company, Galp, has decided to sell its position to the Emirati oil company ADNOC, in the consortium exploiting natural gas.
The Ministry statement comes after the Portuguese company announced reaching an agreement with ADNOC to sell for almost 600 million Euros (650.7 million dollars at the current exchange rate) its position in the Area 4 natural gas consortium.
The agreement between Galp and ADNOC provides for additional contingent payments of 100 million and 400 million dollars with the final investment decision of Coral North and Rovuma LNG.
“In accordance with the legislation in force, this transaction is subject to the approval of the Area 4 partners as well as the government which, through the competent authorities, will have to calculate the respective capital gains”, reads the note.
According to the Portuguese media, Galp has decided to sell its shares in Mozambique and will use the money to continue its investment in Namibia. The decision intends to improve the company’s negotiating position with future partners and free it from the risk of Islamist terrorism in Cabo Delgado.
In Area 4 of the Rovuma Basin, liquefied natural gas (LNG) has been produced and exported since 2022 through the Coral Sul FLNG (Floating Liquefied Natural Gas) Project. Recently, the partners in that area expressed an interest in developing the Coral North FLNG Project, a replica of the Coral Sul project, which is in the process of being evaluated and approved by the government.
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