The Abu Dhabi National Oil Company (ADNOC) has signed an agreement to acquire multinational energy corporation Galp’s 10% interest in the Area 4 concession of Mozambique’s offshore Rovuma Basin. Expected to be complete by the end of 2024, the transaction grants ADNOC a share of the LNG produced from the concession.
With a total production capacity of 25 million tons per annum (mtpa), the Area 4 concession comprises the already-producing Coral South FLNG project (3.5 mtpa), as well as the planned Coral North FLNG project and the Rovuma Onshore LNG development. The Coral North and Rovuma Onshore projects have a planned capacity of 3.5 mtpa and 18 mtpa, respectively, with FID targeted for 2024/2025.
“For over fifty years, ADNOC has been a reliable and responsible global provider of LNG and we are building on this role with this landmark investment in the world-class Rovuma supergiant gas basin in Mozambique as we deliver on our international growth strategy,” stated ADNOC Executive Director for Low Carbon Solutions and International Growth, Musabbeh Al Kaabi.
Under the terms of the deal, Galp will receive $650 million for its shares and shareholder loans. Additional contingent payments of $100 million and $400 million will be payable upon the completion of FID for the Coral North and Rovuma Onshore projects.
