ADNOC Will Buy 10% of Galp’s Shares in the Zone 4 Concession in Mozambique
Abu Dhabi’s national oil company ADNOC has agreed to acquire a 10% stake in Portugal’s Galp Energia’s Zone 4 concession in the gas-rich Rovuma Basin in Mozambique.
The Zone 4 concession is located offshore Cabo Delgado Province in northern Mozambique and is managed by Mozambique Rovuma Venture (70%), owned by ExxonMobil, Eni and CNODC, along with Galp Energia Rovuma, KG Mozambique and Empresa Nacional de Hidrocarbonetos, each of which owns 10%. ExxonMobil is leading the construction and operation of the liquefied natural gas facilities on behalf of Mozambique Rovuma Venture, and Eni is leading the construction and operation of the production facilities.
The Zone 4 concession includes the existing Coral South floating LNG plant (FLNG) and the proposed Coral North FLNG project. The planned onshore Rovuma LNG facilities are also part of the concession.
The Coral South FLNG facility, operational from 2022, is capable of producing up to 3.5 million tonnes of LNG per year and is the first facility of its type in Africa.
The Coral North plant is planned to produce an additional 3.5 million tons of LNG per year through the installation of FLNG to process and liquefy natural gas for export.
The 18 million t/y onshore Rovuma LNG development is designed to reduce the carbon intensity of LNG production and is in line with ADNOC’s goal of achieving carbon neutrality by 2045.
Ultimately, this transaction will give ADNOC the right to a share in the production of LNG under the concession, the total production capacity of which exceeds 25 million tons per year.
The deal is another move by ADNOC to expand its international gas portfolio, having just acquired a stake in a US LNG asset and recently formed a gas joint venture with BP, initially focused on Egypt.
Subject to third-party approvals, the transaction is expected to close this year.
