Galp Energia anticipates a $100 million contingent payment in 2025 following the FID for Coral Norte FLNG and has formally notified the Mozambican government regarding a tax dispute after selling its stake in Area 4 to ADNOC's subsidiary.

Information on the Target

Galp Energia, a prominent energy company, has announced that following the final investment decision (FID) for the Coral Norte Floating Liquefied Natural Gas (FLNG) project, it expects to receive a contingent payment of $100 million in the fourth quarter of 2025. This decision highlights Galp's involvement in significant energy projects in Mozambique. In 2025, the company sold its stake in Mozambique's Area 4 to XRG P.J.S.C., a wholly owned subsidiary of the Abu Dhabi National Oil Company (ADNOC).

The transaction encompassed several key projects, including the operational Coral Sul FLNG, the Coral Norte FLNG, for which the FID was taken on October 2, 2025, and the Rovuma LNG onshore project. In addition to the contingent payments, the sale provided Galp with approximately $881 million, taking into account equity value, shareholder loan reimbursements, and accumulated investments since the reference date of December 31, 2023. Further contingent payments totalling $400 million are anticipated, subject to the FID for the Rovuma project.

Industry Overview in Mozambique

Mozambique's energy sector has witnessed significant transformation, particularly in natural gas exploration and production. The discoveries in the Rovuma Basin have positioned the country as a rising player in the global energy l