ADNOC makes fourth gas foray abroad with Mozambique deal
Updates with details, background throughout
DUBAI, May 22 (Reuters) -Abu Dhabi National Oil Company (ADNOC) has bought Galp's GALP.LS 10% stake in the Area 4 concession of the multi-billion-dollar natural gas project in Mozambique's Rovuma basin, its fourth international foray into gas.
The deal ADNOC announced on Wednesday comes hot on the heels of it acquiring an 11.7% stake in NextDecade's Rio Grande liquefied natural gas (LNG) export facility in Texas, confirmed on Monday.
ADNOC has big ambitions in gas and LNG, which along with renewable energy and petrochemicals, it sees as pillars for its future growth. It plans to grow its 6 million metric tons per annum (mtpa) LNG capacity to 15 mtpa.
Demand for natural gas soared as Europe scrambled to secure supplies to replace Russian gas in the wake of Moscow's invasion of Ukraine last year.
Galp said it would receive around $650 million for its shares and shareholder loans, already net of capital gain taxes when the deal is completed, expected this year. Lease liabilities were $525 million as of end-2023, it added.
"Additional contingent payments of $100 m and $400 m will be payable with the final investment decision of Coral North and Rovuma LNG, respectively," Galp said in a statement.
Under the terms of the deal, ADNOC will have access to a share of the LNG production from the concession, which will have a combined capacity of more than 25 mtpa, it said in a statement.
The Area 4 concession includes the operational Coral South Floating LNG (FLNG) facility, as well as the planned Coral North FLNG development and Rovuma LNG onshore facilities, which Galp said are both expected to be given the green light in 2024/2025.
Coral South has a production capacity of 3.5 mtpa while Coral North is expected to add another 3.5 mtpa. The onshore Rovuma development is expected to produce 18 mtpa.
The investment "complements ADNOC's efforts to expand its lower-carbon LNG portfolio to meet growing gas demand" and support the energy transition, the company said.
The state oil giant views gas as a transition fuel to renewable energy sources. ADNOC Chief Executive Sultan Al Jaber presided over the COP28 climate summit in Dubai last year, where nearly 200 countries agreed to transition away from fossil fuels.
Reuters reported in October that ADNOC was on the hunt for LNG assets in Africa and was considering buying Galp's 10% stake in the Rovuma basin, citing two people with knowledge of the matter.
In February, ADNOC and oil major BP said they would form a joint venture in Egypt that would initially focus on gas. Last summer, ADNOC said it would acquire a 30% stake in Azerbaijan's Absheron gas and condensate field in the Caspian Sea.
ADNOC is also developing a 9.6-mtpa LNG project in Ruwais, west of UAE capital Abu Dhabi, expected to begin commercial operations in 2028.
Reporting by Yousef Saba and Federico Maccioni; Editing by Jan Harvey, Louise Heavens and Alison Williams
Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
