ADNOC subsidiary XRG completes acquisition of Galp’s stake in Mozambique’s Rovuma Basin LNG projects

XRG, a wholly owned subsidiary of the UAE’s Abu Dhabi National Oil Company (ADNOC), has completed its acquisition of Portuguese oil and gas company Galp Energia’s 10% interest in the Area 4 concession in Mozambique’s Rovuma Basin, initially announced in May 2024.

This is the company’s first strategic investment in Mozambique’s natural gas development, reflecting XRG’s goal of building a world-class, integrated gas portfolio to meet growing global demand while fostering a more sustainable energy future.

XRG joins energy supermajors ExxonMobil (US) and Eni (Italy) to unlock one of the largest global gas discoveries in the Rovuma Basin offshore Mozambique in the past 15 years. The deal offers XRG access to liquefied natural gas (LNG) projects with a combined potential production capacity of more than 25mn tonnes per year (tpy) from onshore and offshore LNG production.

The acquisition includes stakes in the operational Coral South Floating LNG (FLNG), the planned Coral North FLNG and Rovuma LNG’s onshore development projects, XRG said in a press statement on March 27.

“We are proud and excited to be part of the responsible development of Mozambique’s world-class Rovuma Basin. Together with the government of Mozambique and our partners, we are looking forward to sharing our expertise, adding value and accelerating these developments towards their full potential LNG capacity,” said Khaled Salmeen, XRG’s chief operating officer (COO). “This milestone investment will enhance XRG's ability to provide energy solutions to meet rising demand and help unlock sustainable economic growth.”

Coral South FLNG is Africa’s first floating LNG project, with a production capacity of 3.5mn tpy. It uses advanced technology focused on energy efficiency. A second project, Coral North FLNG, is awaiting a final investment decision (FID), and is expected to add another 3.5mn tpy of offshore LNG production. Eni is leading both offshore projects.

Meanwhile, the onshore Rovuma LNG Phase 1 project, led by ExxonMobil, aims to produce 18mn tpy of LNG. It is currently in the front-end engineering design (FEED) phase, expected to be completed in 2025. The project will use a modular electric drive system to lower carbon emissions. The FID for Rovuma, originally planned for 2025, was recently moved forward to 2026.

According to Galp, the sale has enabled it to collect a payment of approximately $881mn in Q1 2025. Additional contingent payments of $100mn and $400mn will be made once the FID is made for Coral North and Rovuma LNG, respectively, as reported by Offshore Energy.

This latest acquisition enhances XRG’s expanding global portfolio across the energy sector. Committed to sustainable economic growth and long-term value creation, XRG says it focuses on three key areas: gas, chemicals, and low-carbon energy solutions. Gas and LNG are at the core of XRG’s long-term strategy, with recent strategic acquisitions in the United States, Mozambique, Azerbaijan, and Egypt.