Rovuma Basin: "Safety in the north is crucial for the natural gas project to move forward" - Galp

Bacia do Rovuma: “Segurança no norte é crucial para projecto de gás natural avançar” – Galp

Galp has no news on natural gas development in the north of the country. The company recognizes that security in the region is essential for the Rovuma project in area 4 to move forward.

"We regret the loss of life in Palma," Galp's CEO said Wednesday about the attacks by jihadist groups that took place in this town in the northern Lusophone African country earlier this year.

"The Government of Mozambique is working hard to restore the situation. We hope that the situation will stabilize," said Andy Brown this Wednesday, June 2, during the presentation to the markets of the strategic plan until 2025.

"We don't think the project won't go forward, but it is premature to declare a date" for the FID (the final decision on the investment).

"It's too early to say there's going to be divestment; it's too early to say there's going to be FID," according to the manager.

Questioned by analysts about how Galp plans to invest in this project if and when the final investment decision is made by the consortium, the oil company's leader pointed out that it will be necessary to "free up capital elsewhere to finance" this project.

In the company's strategic plan document, Galp highlights that the Rovuma project is "one of the most competitive in natural gas worldwide.

At the same time, it highlights that security in the region is "crucial for the project to move forward." The oil company points out that the first gas can be expected between 2025 and 2030.

Also in Mozambique, the company is developing another natural gas project: Coral, which involves the construction of an FLNG vessel that extracts and liquefies natural gas to export it to other countries by ship. Galp expects the first gas from this project in 2022.

Galp has a 10% stake in the Area 4 projects, both in Coral and Rovuma.

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