Leading global law firm, Baker McKenzie has advised Galp on its agreement with Abu Dhabi’s ADNOC for the sale of its 10% stake in the Area 4 concession of the Rovuma basin in Mozambique. The transaction is subject to customary third-party approvals, with completion expected during 2024.
Area 4 includes Coral South FLNG, in operation since 2022, as well as the prospective Coral North FLNG and Rovuma LNG onshore developments, both expected to be sanctioned during 2024/25.
Upon completion, Galp will receive c.USD 650 million for its shares and shareholder loans, already net of capital gain taxes.
Additional contingent payments of USD 100 million and USD 400 million will be payable by ADNOC against final investment decisions for Coral North and Rovuma LNG, respectively.
Led by the Firm's Global Chair of Energy, Mining, Infrastructure & Projects, Richard Blunt, the cross-practice Baker McKenzie team included:
- Corporate / Energy and Infrastructure: Philip Thomson (Partner, London), Andrew Burleigh (Senior Associate, London) and Ryan Howlett (Associate, London)
- Banking: Luka Lightfoot (Partner, London) and Hesa Alaseeri (Senior Associate, London)
- Competition: Luis Gomez (Partner, London) and Anthony Gamble (Senior Associate, London)
Commenting on the transaction, Richard Blunt said: "We are delighted to have advised Firm client Galp on this landmark agreement with ADNOC. The sale of Galp’s 10% stake in the Area 4 concession of Mozambique’s Rovuma basin represents a strategically important move and underscores Galp’s commitment to optimising its portfolio and focusing on core assets. ADNOC’s entry into Mozambique through this acquisition further highlights the attractiveness of the Rovuma basin, which holds significant potential for natural gas exploration and production, with LNG being one of the clear pathways to the energy transition."