Maputo, Nov. 7, 2025 (Lusa) - The Portuguese ambassador in Maputo rejected on Friday the existence of a “war” between Galp and Mozambique's government over the €151.5 million tax dispute over the sale of its stake in a gas project, calling for dialogue.
"When there is some kind of disagreement on an issue that affects the lives of companies, the best way is always dialogue," said Ambassador Jorge Monteiro, acknowledging the possibility of both parties resorting to the mechanisms provided for by law.
"But there is no war here. There is a dispute over an issue involving tax collection, but there are mechanisms for dialogue, for rapprochement, and I believe that this will be the way that will eventually produce a satisfactory solution for both parties," added the diplomat, who was speaking in Maputo on the sidelines of the seminar on Dissemination of Labour Legislation among Companies with Portuguese Investment in Mozambique.
For now, he said, the two parties need to find solutions: "I think there was a dispute here about a tax situation that was decided by the Mozambican authorities. The company, exercising its legitimate right to challenge the decision it was confronted with, has been seeking a solution through dialogue, rapprochement, clarification of positions, trying to find an understanding, and I believe that this is always the way forward in these matters."
On 27 October, Galp said that there is no legal basis for Mozambique's government to claim €151.5 million from the sale of its stake in a gas project and that it is "very committed" to finding a solution with the government.
"We believe that there is no legal basis for this complaint, [...] we are very, very committed to finding a solution with Mozambique's government," said Galp's co-chairman João Diogo Silva, in a conference call with analysts on the third quarter results.
On 8 October, Lusa reported that the Mozambican Tax Authority (AT) is claiming $175.9 million (€151.5 million) from Galp in connection with the sale of the oil company's stake in a gas project, warning that the amount "could rise" and that an enforcement process is underway.
When asked about this dispute, the executive co-chairs, Maria João Carioca and João Diogo Silva, emphasised that Galp respects its institutional obligations and is following the due course of the law.
"Galp has been in Mozambique for over 65 years, we are very, very, very present in the downstream business [final stages of the production chain up to the sale at petrol stations], it's a country that we totally respect," said João Diogo Silva.
At issue is the tax dispute that followed the conclusion of the sale, last March, of Galp's 10% stake to the state oil company of the United Arab Emirates (ADNOC), in Area 4 of the Rovuma Basin, in the north of the country, for the production of natural gas, in a deal worth around $950 million (€819 million).
Galp had previously announced that it had formally taken the first step towards resolving the dispute with Mozambique's tax authorities by filing a case in an international arbitration court.
Mozambique's government has previously stated that it is not negotiating with Galp over the amount of capital gains tax. However, it believes in the "good sense" of the Portuguese oil company.
Galp recorded a profit of €973 million in the first nine months of the year, 9% more than in the same period in 2024, with a “record” of €407 million in the third quarter (+53%).
PME/ADB // ADB.
Lusa
