Portuguese energy company Galp has completed the $881 million sale of its upstream assets in Mozambique’s Area 4 to XRG P.J.S.C., a unit of the Abu Dhabi National Oil Company (ADNOC), a move that reshapes the country’s growing LNG sector.
The deal covers Galp’s stake in the Coral South FLNG project, Africa’s first deepwater floating LNG facility, operational since 2022. It also includes shares in the upcoming Coral North FLNG and Rovuma LNG onshore projects, both targeting final investment decisions (FIDs) by 2024 or 2025.
In a statement, Galp confirmed that the $881 million covers equity value, loan repayments, and investments made since December 31, 2023. The assets carried $525 million in lease liabilities as of that date.
The agreement outlines two contingent payments:
• $100 million upon Coral North’s FID
• $400 million after Rovuma LNG reaches FID
This payment structure mirrors the risk and timelines of large LNG projects and aligns with ADNOC’s long-term global expansion strategy.
For ADNOC, the acquisition strengthens its international LNG portfolio as demand continues to climb. The UAE energy giant has been aggressively growing its presence in key gas markets worldwide.
Mozambique’s Area 4, led by operator Eni, remains one of the world’s top gas basins. Coral South currently ships LNG through its floating platform, positioning the area as a future LNG hub for Africa.
Although Galp has exited upstream operations in Mozambique, it says it will keep optimizing its portfolio and explore new energy ventures aligned with its energy transition goals.
The deal highlights Mozambique’s growing appeal to global energy players and cements its position in the global LNG spotlight.
Souce; furtherafrica.com
