Africa-Press – Mozambique. The Portuguese oil and gas company, Galp, has reached an agreement with ADNOC, the oil company from the United Arab Emirates, to sell for almost 600 million Euros (650.7 million dollars at the current exchange rate) its position in the consortium exploiting natural gas in the Rovuma basin, off the coast of the northern Mozambican province of Cabo Delgado.
According to a statement, cited by the Portuguese News Agency Lusa, Galp announced that it will sell its 10% stake in Area 4 of the Rovuma Basin, an operation that should be finalized by the end of the year, in what it described as a “disciplined” investment strategy.
Area 4 includes the Coral South floating liquefied natural gas platform (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”, says the document.
The company should receive 650 million dollars for its shares and shareholder loans, net of capital gains tax.
The agreement also provides for “additional contingent payments of 100 million and 400 million dollars 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, the Italian energy company ENI and CNPC of China, which holds a 70 per cent stake in the concession contract.
Galp, Kogas from South Korea and Mozambique’s own publicly-owned National Hydrocarbon Company (ENH) each hold a 10 per cent stake.
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