In May 2024, Adnoc announced this move to buy the stake from Galp.
The UAE giant formed XRG, with an enterprise value of over $80 billion, to invest in gas and LNG, chemicals, and low-carbon energies in November 2024.
XRG said on Friday that this strategic investment, XRG’s first in the country, reflects the company’s goal of building an integrated gas portfolio.
“Our recently completed transaction in Mozambique reinforces our position in key energy markets and expands our global gas portfolio,” the company said.
“With gas and LNG at the core of our long-term strategy, we are committed to supporting energy security and driving economic growth,” XRG said.
“With completion, Galp collects a payment of $881 million in 1Q25, encompassing the equity value of shares, shareholder loans reimbursement, and accumulated investments made since the transaction reference date of December 31, 2023,” Galp said in a separate statement.
Additional contingent payments of $100 million and $400 million will be made to Galp following completion, subject to the final investment decision of Coral North and Rovuma LNG, respectively, it said.
Three projects
Adnoc previously said the acquisition from Portugal’s Galp will entitle it to a share of the LNG production from the concession, which has a combined production capacity exceeding 25 million tonnes per annum (mtpa).
Besides the operational Coral Sul (South) FLNG, the Area 4 concession includes the planned 3.5 mtpa Coral Norte (North) FLNG development, which his expected to take FID this year, and the planned ExxonMobil-operated 18 mtpa Rovuma LNG onshore facilities.
Area 4 is operated by Mozambique Rovuma Venture (MRV), a joint venture owned by Eni, ExxonMobil, and CNPC, which holds a 70 percent interest in the Area 4 exploration and production concession contract.
In addition to MRV, Galp, Kogas, and ENH each hold a 10 percent interest in Area 4.
Mozambique’s Rovuma supergiant gas basin represents one of the world’s largest gas discoveries in the past fifteen years and holds proven reserves to provide a stable supply of natural gas to the FLNG and onshore facilities, Adnoc said.
