Saturday, June 15, 2024

Mozambican government awaits details to formalize sale of Galp shares

The Chairman of the Board of Directors (PCA) of the National Petroleum Institute (INP), Nazário Bangalane, revealed that the government is waiting for more details in order to formalize and speed up the sale of Portuguese oil company Galp’s shares in the liquefied natural gas (LNG) project in Area 4 of the Rovuma basin in Cabo Delgado.

According to Bangalane, Galp is tasked with officially submitting the sale process, which will then be analyzed by the government, with a view to obtaining all the in-depth details of the contract. He emphasized the Executive’s interest in speeding up the process to guarantee the continuity of work in the Rovuma basin according to the approved standards.

Last month, Galp announced an agreement with the United Arab Emirates oil company, ADNOC, to sell its position in the consortium researching natural gas in the Rovuma basin, for almost 41.1 billion meticais (600 million euros). Galp will sell its 10% stake in Area 4, an operation that should be concluded by the end of the year.

Area 4 includes Coral South FLNG, operational since 2022, as well as the onshore developments of Coral North FLNG and Rovuma LNG, expected to be approved in 2024/2025. The company should receive 41.1 billion meticais (600 million euros) for its shares and shareholder loans, already net of capital gains taxes.

The agreement also provides for additional contingent payments with the final investment decision for Coral Norte and Rovuma LNG, respectively. Area 4 is operated by Mozambique Rovuma Venture (MRV), a joint venture co-owned by ExxonMobil, Eni and CNPC (China), which holds a 70% participating interest in the concession contract.

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