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 gas projects, including those in Area 4, have drawn considerable interest from international investors, significantly increasing Mozambique's prominence in the global energy landscape.
Despite its potential, the development of Mozambique's energy sector is not without challenges, including regulatory uncertainties and unresolved taxation issues. Galp’s recent notification to the Mozambique government regarding a tax dispute reflects the ongoing complexities faced by foreign investors in navigating local laws and regulations.
Furthermore, Mozambique aims to enhance its energy independence and supply infrastructure. As such, the ongoing investment in LNG projects is vital for national development and energy security, serving both domestic consumption and export markets.
Given the geopolitical importance of energy resources, strategic partnerships with multinational corporations like ADNOC…