Abu Dhabi National Oil Company (ADNOC) has signed an agreement to acquire a 10% equity stake in the Area 4 concession in Mozambique's Rovuma basin from Galp.  

This move will grant ADNOC a share of the LNG production from a concession with a capacity of more than 25 million tonnes per annum (mtpa).  

The Area 4 concession comprises the operational Coral South Floating LNG (FLNG) facility as well as the proposed Coral North FLNG development, and the Rovuma LNG onshore facilities. 

Upon completion of the transaction, Galp is set to receive approximately $650m for its shares and shareholder loans, already net of capital gains taxes.  

Additional contingent payments of $100m and $400m will be due upon the final investment decisions of Coral North and Rovuma LNG, respectively.  

These developments are expected to receive sanctioning during 2024/25. 

This acquisition marks ADNOC's inaugural investment in Mozambique and aligns with the company's strategy to enhance its lower-carbon LNG portfolio to cater to increasing global gas demand. 

Operational since 2022, Coral South FLNG has the capacity to produce up to 3.5mtpa of LNG. 

The proposed Coral North development is anticipated to produce an additional 3.5mtpa of LNG through an FLNG facility designed to process and liquefy natural gas for export.  

With an expected capacity of 18mtpa, the Rovuma Onshore LNG project is designed to be modular and electric-driven, reducing the carbon intensity of the LNG produced in comparison to industry benchmarks. 

ADNOC executive director for low-carbon solutions and international growth Musabbeh Al Kaabi said: “For over 50 years, ADNOC has been a reliable and responsible global provider of LNG and we are building on this role with this landmark investment in the world-class Rovuma supergiant gas basin in Mozambique as we deliver on our international growth strategy.  

“Natural gas plays an important role to meet growing global demand with lower emissions compared to other fossil fuels and this acquisition supports our efforts to build an integrated global gas business to ensure we continue providing a secure, reliable and responsible supply of natural gas.” 

Subject to customary third-party approvals, the completion of this transaction is expected to occur in 2024.  

Earlier in the week, ADNOC expanded its LNG portfolio by acquiring an 11.7% stake in Phase 1 of the Rio Grande LNG project in Brownsville, Texas, US, and signing an LNG offtake agreement.