Portuguese energy firm Galp has finalized the $881 million sale of its upstream assets in Mozambique’s Area 4 to XRG P.J.S.C., a subsidiary of the Abu Dhabi National Oil Company (ADNOC), marking a significant shift in the country’s LNG sector.
The transaction includes Galp’s interest in the Coral South FLNG project — Africa’s first deepwater floating liquefied natural gas facility — which has been operational since 2022.
It also covers Galp’s stakes in the planned Coral North FLNG and Rovuma LNG onshore developments, both expected to reach final investment decisions (FIDs) by 2024 or 2025.
According to Galp, the $881 million price tag accounts for the equity value, loan repayments, and investments made since December 31, 2023. As of that date, the assets carried $525 million in lease liabilities.
The deal also features two contingent payments:
- $100 million payable upon Coral North’s FID
- $400 million upon Rovuma LNG’s FID
This performance-based payment structure reflects the long timelines and inherent risks associated with major LNG projects, while aligning with ADNOC’s strategy to expand its global gas footprint.
For ADNOC, the acquisition reinforces its international LNG portfolio at a time when global demand for gas continues to rise. The UAE energy giant has been steadily increasing its presence in key LNG markets worldwide.
Mozambique’s Area 4, operated by Italy’s Eni, remains one of the most significant gas reserves globally. Coral South currently exports LNG through its floating platform, solidifying the region’s potential as a major African LNG hub.
Although Galp is exiting upstream operations in Mozambique, it reiterated its commitment to optimizing its portfolio and pursuing energy ventures aligned with its energy transition strategy.
The deal not only underscores Mozambique’s growing attractiveness to global energy players but also highlights the country’s rising profile in the global LNG arena.
