Communication - Presse
Area 4: Abu Dhabi Interested in Acquiring Galp’s Shares in The Rovuma Basin Gas Project
The Abu Dhabi National Oil Company, ADNOC, is willing to buy Portuguese oil company Galp’s 10% stake in the Rovuma Basin natural gas project in Mozambique. According to Portuguese newspaper Negócios, the purchase is part of the company’s expansion plans on the African continent.
“ADNOC has been looking for projects to invest in the natural gas area, particularly in Africa,” reads the report. As part of this plan, it has studied acquiring a 10% share of Galp’s business in Mozambique, according to Reuters, which cites two sources involved in the process. However, when asked by Negócios about this possible agreement, neither company would comment.
In February, the Portuguese oil company Galp had already announced that it was willing to sell its stake in the natural gas project in the Rovuma basin in Mozambique. At the time, it handed over the possible completion of this operation to Bank of America, the same financial institution that had already been involved in the sale of Galp’s positions in offshore oil blocks 14 and 32 in Angola.
The sale of the stake in Mozambique is part of a wider plan to get Galp out of Africa in the areas of exploration and production. As well as Angola and Mozambique, the Portuguese oil company also has interests in these areas in São Tomé and Príncipe and Namibia.
In Mozambique, Galp holds a 10% stake in the consortium for the development of natural gas exploration in Area 4, in the Rovuma basin, in the province of Cabo Delgado. Italy’s Eni is the operator with an indirect 50% stake, through Eni East Africa, which holds a 70% stake in Area 4. Kogas and ENH each have a 10% stake in the project, while China National Petroleum Corporation has an indirect 20% stake through Eni East Africa. In 2017, the total investment planned for the Area 4 project, named Coral South, stood at seven billion dollars.
