Africa-Press – Mozambique. A Portuguese energy company has filed an arbitration claim against Mozambique at the International Centre for Settlement of Investment Disputes, in a tax dispute related to the sale of its stake in a major offshore gas project off the coast of Mozambique.
The International Centre for Settlement of Investment Disputes website shows that the case was registered on June 26, 2026, amid a disagreement regarding the capital gains tax arising from the sale of the company’s 10% stake in the Area 4 project in the Rovuma Basin.
The dispute centers on the deal made by the company in 2024 to sell its stake in the project to a subsidiary of an Emirati company, as Mozambique claims that the Portuguese company may owe a larger tax amount than it has paid.
The company states that it received approximately $881 million upon completing the deal in 2025, considering this amount to be inclusive of capital gains taxes, while the tax authority in Mozambique did not immediately respond to requests for comment on the case.
In October 2025, the company announced that it had officially notified Mozambique of the existence of a dispute under investment protection and promotion agreements, considering this step to represent the “beginning of the process” towards international arbitration regarding the tax dispute linked to the sale of its stake in Area 4.
The Area 4 project in the Rovuma Basin is one of the most significant liquefied natural gas projects in Mozambique, including the floating and producing Coral South FLNG platform led by an Italian company, as well as the Coral North FLNG project under development, and a proposed onshore liquefied natural gas plant managed by another international company.
The lawsuit reflects the sensitivity of tax issues in the African extraction sector, where governments seek to maximize revenues from natural resources, while international companies resort to arbitration mechanisms to protect their investments or challenge tax authority assessments.
