Galp has sold its blocks or shares in Mozambique and Angola in May and June 2024.
Reuters and Bloomberg broke the news in May that Galp sought to sell a 40% stake in the Mopane discovery PEL 83 in the Orange Basin.
Galp holds 80%, and Namcor and Custos Energy each have 10%.
The Portuguese company signed an agreement with Abu Dhabi National Oil Company (ADNOC) to sell its upstream assets in Mozambique in May 2024.
ADNOC is a leading diversified energy group wholly owned by the Abu Dhabi government
Area 4 includes Coral South FLNG, which has been in operation since 2022, and the prospective Coral North FLNG and Rovuma LNG onshore developments, both expected to be sanctioned during 2024/25.
The transaction supports Galp’s disciplined capex strategy.
Upon completion, Galp will receive C$650 million for its shares and shareholder loans, already net of capital gain taxes.
Additional contingent payments of US$100 million and US$400 million will be payable with the final investment decision of Coral North and Rovuma LNG, respectively.
Mozambique’s Rovuma supergiant gas basin represents one of the world’s most significant gas discoveries in the past fifteen years.
It holds proven reserves to provide a stable natural gas supply to the FLNG and Onshore facilities.
The 18-mtpa Rovuma Onshore LNG development is a modular, electric-drive design that will dramatically reduce the carbon intensity of the LNG it produces compared to industry benchmarks.
The facility’s design philosophy and emphasis on limiting carbon dioxide (CO2) emissions align with ADNOC’s ambition to achieve net zero by 2045.
The Coral South development, currently in operation, can produce up to 3.5 mtpa of LNG and represents the first facility of its kind in Africa.
The proposed Coral North development is expected to produce a further 3.5 mtpa of LNG through an FLNG facility to process and liquefy natural gas for export.
The sale of Angolan assets to Sociedade Petrolífera Angolana S.A. (SOMOIL) was signed in February 2023 and finalised only last week.
Way back then, Sociedade Petrolífera Angolana S.A. had not changed its name to Etu Energias.
Etu Energias is the most significant private 100% Angolan oil & gas company.
Etu Energias operates onshore assets FS, FST, CON-1 and CON-6 and Block 2/05 offshore the lower Congo Basin.
Additionally, Etu Energias holds working interests in Blocks 3/05, 3/05-A, 4/05, 14/14K (from a previous acquisition) and 17/06.
Galp stated that it intended to sell 9% in Block 14, 4,5% in Block 14K and another 5% in Block 32 for C$830 million, including C$655 million to be paid until completion and C$175 million in contingent payments due in 2024 and 2025, dependent on Brent price.
Block 32 is located approximately 260 km off the coast of Luanda, in water depths ranging from 1,400 to 2,000 metres.
Production started in 2018 and continues to be one of the biggest producing blocks in Angola.
It is operated by TotalEnergies Exploration Production Angola (30%), which leads the contractor group composed of Sonangol Pesquisa e Produção, S.A. (30%), SINOPEC (20%), ExxonMobil (15%), and also Galp Energia Overseas Block 32 BV (5%).
Block 14/14K Block 14/14K is approximately 100 km offshore from Cabinda in Angola and covers around 4,094 km2.
The first oil was produced in 1999 and continues to make significant outputs of medium-light crude oil.
It is operated by Cabinda Gulf Oil Company Limited – Chevron (31%), which leads a contractor group composed of Sonangol Pesquisa e Produção, S.A. (20%), Eni Angola Exploration, B.V. (20%), Etu Energias, through its affiliate Angola Block 14 B.V. (20%) and Galp Energia Overseas Block 14 B.V. (9%).
Local authorities and regulatory bodies have fully approved the transaction.
Financing for the Transaction was provided by an international syndicate led by the African Export-Import Bank (Afreximbank) and including Shell Western Supply and Trading Ltd, Banco Angolano de Investimento (BAI) and Banco de Fomento Angola (BFA).
