The Ministry of Mineral Resources and Energy has announced that the partners in Area 4 of the Rovuma basin, off the coast of Cabo Delgado province, may change, as Portuguese oil and gas company Galp has decided to sell its position to Emirati oil company ADNOC in the natural gas exploration consortium.

The Ministry's statement comes after the Portuguese company announced that it had reached an agreement with ADNOC to sell its position in the Area 4 natural gas consortium for almost 600 million euros (650.7 million dollars at the current exchange rate).

The agreement between Galp and ADNOC provides for additional contingent payments of 100 million and 400 million dollars with the final investment decision for Coral North and Rovuma LNG.

"In accordance with the legislation in force, this transaction is subject to the approval of Area 4's partners as well as the government which, through the competent authorities, will have to calculate the respective capital gains," the note reads.

According to the Portuguese press, Galp has decided to sell its shares in Mozambique and will use the money to continue its investment in Namibia. The decision is intended to improve the company's negotiating position with future partners and free it from the risk of Islamic terrorism in Cabo Delgado.

In Area 4 of the Rovuma Basin, liquefied natural gas (LNG) has been produced and exported since 2022 through the Coral Sul FLNG (Floating Liquefied Natural Gas) Project.

Recently, the partners in that area expressed interest in developing the North Coral FLNG Project, a replica of the South Coral project, which is in the process of being evaluated and approved by the government. (AIM)