Maputo, July 4, 2025 (Lusa) - Mozambique's government expects Galp to pay capital gains taxes in 2025 and 2026 on the sale of its 10% stake in the Area 4 natural gas consortium, according to official documents consulted by Lusa.
"In 2024, the company Galp announced its intention to sell its 10% stake in Area 4 to the United Arab Emirates national oil company, Adnoc. Some transactions related to this operation are expected to be completed in 2025 and 2026, which should generate capital gains tax payments," reads the Medium-Term Fiscal Scenario (CFMP), a document the cabinet approved on 24 June.
Area 4 is operated by Mozambique Rovuma Venture (MRV), a joint venture co-owned by ExxonMobil, Eni and CNPC (China), which holds a 70% stake in the concession contract.
Galp (until this year), Kogas (South Korea) and ENH - Empresa Nacional de Hidrocarbonetos (Mozambique) each hold a 10% stake.
The Mozambique's government document, conwhich Lusa saw on Friday, states that "given the uncertain nature of this revenue stream", the current estimates "do not incorporate specific figures for the capital gains tax, and it is expected that the projections will be updated in due course as new information becomes available".
Galp announced on 28 March that it had completed the sale of its 10% stake in Area 4 in Mozambique for $881 million (€816 million) to XRG, a wholly-owned subsidiary of Abu Dhabi National Oil Company (ADNOC).
In a statement sent to the Portuguese Securities Market Commission (CMVM), Galp said that the amount received "includes the equity value of the shares, the repayment of shareholder loans and accumulated investments made since the transaction's reference date of 31 December 2023".
The Portuguese oil company said that there could be "additional contingent payments of $100 million and $400m" after the conclusion of the transaction, subject to the final investment decision of Coral Norte and Rovuma LNG, respectively.
Area 4, the company said, includes the Coral Sul FLNG [floating platform], which has been operating since 2022, as well as the onshore developments at the prospective Coral Norte FLNG and Rovuma LNG, both of which are expected to be approved in 2024/2025.
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