Thursday, July 18, 2024

Galp’s sale in area 4 of the rovuma basin could impact project partners, reveals MIREME

Mozambique’s Ministry of Mineral Resources and Energy (MIREME) has announced that the partners in Area 4 of the Rovuma Basin, off the coast of Cabo Delgado province, may undergo changes following the decision by Portuguese oil and gas company Galp to sell its position to the United Arab Emirates oil company ADNOC in the natural gas exploration consortium.

According to the Mozambican Information Agency, Galp reached an agreement with ADNOC to sell its position for around 41.1 billion meticais (650.7 million dollars) in the Area 4 natural gas consortium.

The Ministry statement clarifies that this transaction is subject to the approval of the Area 4 partners and the Government, which will calculate the respective capital gains in accordance with the legislation in force.

The Portuguese press reports that Galp took the decision to sell its shares in Mozambique to invest in Namibia, with the aim of improving its negotiating position with future partners and reducing the risk associated with Islamic 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. The partners in this area have recently shown interest in developing the Coral Norte FLNG Project, a replica of Coral Sul, which is currently being assessed and approved by the government.

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