Galp announced a contingent payment from its divestment in Mozambique's Coral Norte FLNG project, highlighting ongoing complexities in taxation and regulatory frameworks while positioning itself for strategic growth in the energy sector.

Target Information

Galp has announced an anticipated contingent payment of $100 million in the fourth quarter of 2025, following the final investment decision (FID) for the Coral Norte FLNG project. This announcement is part of the company's broader strategic divestment and operational involvement in Mozambique's energy sector.

In March 2025, Galp sold its participation in Area 4 of the Rovuma Basin in Mozambique to XRG P.J.S.C., a wholly-owned subsidiary of the Abu Dhabi National Oil Company (ADNOC). The transaction involved several major projects, including the Coral Sul FLNG, operational since 2022, and the recently decided Coral Norte FLNG, along with the Rovuma LNG onshore project.

Industry Overview

The energy sector in Mozambique has been identified as a region of significant potential due to its vast natural gas reserves, particularly in the Rovuma Basin. The country’s natural