The Mozambican Ministry of Mineral Resources and Energy has announced a potential change in the partnership of Area 4 in the Rovuma Basin, located off the coast of Cabo Delgado province.
This follows the decision by the Portuguese oil and gas company Galp to sell its stake to the Emirati oil company ADNOC.
Galp has reached an agreement with ADNOC to sell its position in the Area 4 natural gas consortium for nearly 600 million euros (approximately 650.7 million dollars at the current exchange rate).
The deal also includes additional contingent payments of 100 million and 400 million dollars, dependent on the final investment decisions for the Coral North and Rovuma LNG projects.
The Ministry’s statement emphasized that this transaction is subject to approval by the Area 4 partners and the Mozambican government, which will assess the respective capital gains.
Portuguese media reports indicate that Galp’s decision to sell its shares in Mozambique is part of a strategy to redirect investment towards Namibia, improving its negotiating position with future partners and mitigating the risks associated with Islamist terrorism in Cabo Delgado.
Since 2022, liquefied natural gas (LNG) has been produced and exported from Area 4 through the Coral Sul FLNG (Floating Liquefied Natural Gas) project.
The consortium partners have recently shown interest in developing the Coral North FLNG project, a similar venture to Coral Sul, which is currently under government review and evaluation.
