Report: Galp Planning to Sell 10% Stake in Mozambique Gas Project

(Reuters) — Portugal's Galp Energia has mandated Bank of America to prepare a sale of its 10% stake in a multibillion-dollar natural gas project in Mozambique's Rovuma basin, the Negocios newspaper said on Thursday, citing an unidentified source linked to the energy sector.

There would be no lack of interest in Galp's stake as the war in Ukraine had increased the appetite for gas from international companies, the report said.

Galp declined to comment.

The energy company holds a 10% stake in a consortium exploring for natural gas in Rovuma's Area 4, in the northern Mozambique region of Cabo Delgado, which has been the target of attacks by militants.

The main shareholder with a 70% stake is Mozambique Rovuma Venture, comprising Exxon Mobil Corp., Italy's ENI and China National Petroleum Corp. (CNPC). Korea's Kogas and Mozambique's National Hydrocarbons Company ENH have 10% each.

Galp announced a deal on Monday to sell its upstream business in Angola to SOMOIL for about $830 million. Its Angolan output comes from mature fields with declining production while its main upstream business is in Brazil.

Galp shares were up 1% at 11.815 euros ($12.61) on Euronext Lisbon in afternoon trading.

($1 = 0.9373 euros)

Related News

Comments

{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}