ADNOC to acquire Galp’s stake in Mozambique’s Area 4 concession

Abu Dhabi National Oil Company (ADNOC) has marked a significant stride in its international expansion by acquiring a 10% interest from Galp in the Area 4 concession of the Rovuma Basin in Mozambique. This acquisition, pivotal in ADNOC’s international growth strategy, entitles ADNOC to a share of the liquefied natural gas (LNG) production from the concession, boasting a substantial combined capacity exceeding 25 million tonnes per annum (mtpa).

This strategic investment secures ADNOC’s first foothold in Mozambique and complements its ongoing efforts to broaden its lower-carbon LNG portfolio. This move aligns with global gas demand and supports a just, orderly, and equitable energy transition. The Area 4 concession includes the operational Coral South Floating LNG (FLNG) facility, the planned Coral North FLNG development, and the planned Rovuma LNG onshore facilities.

Musabbeh Al Kaabi, ADNOC Executive Director for Low Carbon Solutions and International Growth, emphasized the significance of this acquisition: “For over fifty 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 in meeting 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.”

The Coral South development, currently operational, produces up to 3.5 mtpa of LNG and represents the first such facility in Africa. The planned Coral North development is poised to add another 3.5 mtpa of LNG through a new FLNG facility, designed to process and liquefy natural gas for export. Additionally, the ambitious 18-mtpa Rovuma Onshore LNG development aims to dramatically reduce the carbon intensity of LNG production, consistent with ADNOC’s commitment to achieve net zero by 2045.

Mozambique’s Rovuma supergiant gas basin, among the world’s largest gas discoveries in the last fifteen years, holds proven reserves capable of providing a stable supply of natural gas for the FLNG and onshore facilities, ensuring long-term sustainability and efficiency.