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Adnoc to obtain Galp’s 10% stake in Mozambique LNG development: Adnoc signed off on acquiring Portuguese energy company Galp’s 10% stake in the Area 4 concession in Mozambique’s Rovuma basin, marking the oil giant’s debut in the African country, according to a press release. Galp secured a USD 650 mn payout from Adnoc, with an extra USD 500 mn contingent upon the approval of two planned development phases, Bloomberg reports.
The details: Adnoc obtained a stake in the operational Coral South LNG export project, which produces 3.5 mn tons annually. The planned Coral North expansion could match this output through a floating export vessel, while an onshore Rovuma project — which could see an investment decision by late 2025 — is expected to produce 18 mn tons of LNG per year. Overall, Adnoc is set to get a share of a potential 25 mn tons a year LNG capacity in Mozambique.
Adnoc is pushing to bolster its low-carbon LNG portfolio to meet its net zero targets and diversify away from oil. The oil giant has plans to ramp up LNG capacity to 15 mn tonnes per year by 2028, up from the current 6 mn tonnes.
This is the second major Adnoc transaction this week: The oil company acquired an 11.7% stake in the first phase of sustainable liquefied natural gas (LNG) producer NextDecade’s USD 18 bn Rio Grande LNG export facility in Texas earlier this week.
And more could come: The energy firm is also eyeing a takeover of German chemical company Covestro, though talks have recently stalled, and is looking to merge its two plastic units — Borealis and Borouge — but the transaction is also facing delays due to changes in management, elections in Austria, and sticking points over technicalities of the merger.
OTHER M&A NEWS-
Global Investment Holding offloads part of Eastern Company stake: Dubai-based Global Investment Holding (GIH) sold a 14.7% minority stake in Egypt-based cigarette manufacturer Eastern Company to Philip Morris International, Eastern Company Managing Director and CEO Hany Aman told Asharq Business following a press release from the company. This leaves GIH with a 15.3% stake in the company.
Background: GIH purchased a 30% stake in Eastern Company from the Holding Company for Chemical Industries (CIHC) for USD 625 mn in a transaction that valued Eastern at more than USD 2 bn back in September 2023. The transaction also saw GIH provide USD 150 mn to help Eastern purchase manufacturing inputs.
