ADNOC will make its first investment in Mozambique through the acquisition of Galp’s 10% interest in the Area 4 concession of the Rovuma basin.
The acquisition will entitle ADNOC to a share of the LNG production from the concession, which has a combined production capacity exceeding 25 million tonnes/year (tpy), ADNOC said in a release May 22.
The concession includes the operational Coral South Floating LNG (FLNG) plant, the planned Coral North FLNG development, and the planned 18 million tpy Rovuma LNG onshore developments.
The Coral South development, in operation since 2022, can produce up to 3.5 million tpy of LNG. The proposed Coral North development is expected to produce a further 3.5 million tpy of LNG through a FLNG plant to process and liquefy natural gas for export.
Upon completion of the deal, ADNOC will pay Galp $650 million for its shares and shareholder loans, already net of capital gain taxes, Galp said in a separate release. As of the transaction reference date (Dec. 31, 2023), lease liabilities were $525 million.
Additional contingent payments of $100 million and $400 million will be payable with the final investment decision of Coral North and Rovuma LNG, respectively, which are expected in 2024/25.
The deal is expected to close this year, subject to customary third-party approvals.