Galp Energia to Receive About $650 Million for 10% Stake in Area 4 Mozambique

By Sarah Sloat

Galp Energia expects to receive about $650 million in a sale of upstream assets in Mozambique to Adnoc, the Portuguese energy company said Wednesday.

The company said the sale of its 10% stake of Area 4 assets supports its capital expenditure strategy. Area 4 includes Coral South floating liquefied natural gas, or FLNG. It also includes the prospective Coral North FLNG and Rovuma LNG onshore developments.

When completed, Galp said it would receive about $650 million for its shares and shareholder loans, net of capital gain taxes. The company said there would be additional contingent payments of $100 million and $400 million payable when the final investment decisions are made regarding the operations of Coral North and Rovuma LNG, respectively.

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(END) Dow Jones Newswires

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