Saturday, June 15, 2024

Galp has completed the sale of its stake in the LNG project

Galp has completed the sale of its stake in the LNG (Liquefied Natural Gas) project in Mozambique for 650 million dollars, marking a significant change in the dynamics of the energy sector in the region. This transaction, which is subject to regulatory approvals, represents an important milestone both for Galp and for the future direction of the project in Area 4 of the Rovuma Basin.

The Ministry of Mineral Resources and Energy (MIREME) confirmed the imminent change of partners in Area 4, where the Coral Sul FLNG project is implemented by concessionaires led by Mozambique Rovuma Venture, a company owned by Eni, ExxonMobil and China National Petroleum Corporation. Galp Energia, which holds a 10% participating interest through Galp Energia Rovuma B.V., is finalizing an agreement to sell its assets to the United Arab Emirates oil company, Abu Dhabi National Oil Company (ADNOC).

Galp Energia’s sale of the assets was justified as part of its “disciplined investment strategy”, allowing the company to avoid additional commitments in Mozambique at a time when it has other burdens in geographies such as Brazil and Namibia. The decision highlights the importance of continuous strategic evaluation of companies in the context of global investments and commercial priorities.

Since the start of investments in Mozambique in 2007, Galp has been an integral part of the project, signing an agreement with Eni and Empresa Nacional de Hidrocarbonetos (ENH) to explore Area 4, which has considerable water depths, reaching up to 2600 meters. This project, with an area of over 13,000 square meters, is recognized as one of the most promising in the world for natural gas production.

The sale of Galp Energia’s stake in this project has implications both for the company and for the development of the energy sector in Mozambique. It also highlights the continued interest of international investors in natural gas projects in the region, despite the challenges and uncertainties associated with the operating environment. This event underlines the need for companies to be flexible and adapt to changing conditions in the global energy market.

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