Upstream in Mozambique

One of the most relevant regions for the future of natural gas production.
Consortium: Galp (10%) Mozambique Rovuma Venture S.p.A. (Operador, 70%) ENH (10%) Kogas (10%)
Area: 13,235 km²
Type: Ultra-deep waters
Water depth: 0 - 2,600 meters
Number of blocks: 1

Galp has been present in Mozambique in the Upstream business since 2007. The entry into the country was marked by the signing of the farm-in contract with Eni and the Empresa Nacional de Hidrocarbonetos (ENH) for the exploration of Area 4, located in waters ranging from shallow to ultra-deep waters of the Rovuma basin.

The considerable gas volumes initially in place (GIIP) identified in Area 4 of the Rovuma basin place it as one of the world’s most relevant regions for the future of natural gas production.


Galp has the following partners in Area 4:

  • Mozambique Rovuma Venture S.p.A., which as a stake of 70% and is detained by:
    • ExxonMobil (operator of the onshore Rovuma LNG project) which holds a 35,7% stake;
    • Eni (operator of the ofshore Coral South FLNG) which holds a 35,7% stake;
    • China National Petroleum Corporation (CNPC) which holds a 28,6% stake;
  • Kogas with a stake of 10%.
  • Empresa Nacional de Hidrocarbonetos (ENH), which holds 10%.

Development concept of Area 4

Coral offshore

The Coral South project consists of the construction of a floating liquefied natural gas (FLNG) unit with a capacity of more than 3.4 million tons per year (mtpa) of LNG, which will be connected to six wells.

The FLNG will be allocated to the southern part of the Coral discovery, which is located exclusively in Area 4, containing about 16 tcf of natural gas.

At the end of 2016, Galp's Board of Directors approved the investment in the Coral South area, with a Final Investment Decision (FID) having been taken by the consortium during 2017. The consortium awarded the Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) contract for the FLNG unit to the TJS consortium (Technip, JGC, Samsung). 

Total development capex for upstream and midstream is estimated at c.$7 billion and first gas is expected during 2022. The Area 4 consortium also signed a c.$5 bn project financing package with a syndicate of leading ECAs and international financial institutions.

In October 2016, the consortium signed an agreement with BP for the offtake of the volumes produced through the Coral South FLNG, for a period of 20 years. 

During 2019, the consortium started the drilling campaign of the Coral area, which includes plans for the drilling of six wells, and is progressing according to the project timeline.

Rovuma LNG

The Mamba discovery stands out for the size and quality of its resources, which allow for a high-scale project and reduced unit operating costs. Allied to the area’s geographical location, this should ensure a high competitiveness compared to other LNG projects.

Since the reservoirs extend between Area 4 and the adjacent Area 1, it will require the approval of unitisation agreement, which has already been submitted, by the Government of Mozambique.

The Area 4 consortium is preparing the first phase of the discovery’s development, with potential for subsequent phases. In 2018, Galp and its partners submitted the Development Plan for Rovuma LNG project, considering two LNG trains of 7.6 mtpa each. 

In May 2019, the Government of Mozambique approved the Development Plan for Phase I of the Rovuma LNG project and also approved the LNG sales and purchase agreements for the project. The Joint Venture that is developing Area 4 has awarded the midstream EPC contract for Phase I of the Rovuma LNG onshore facilities to the JFT consortium, which is made up of JGC, Fluor and TechnipFMC.

Currently, the partners are working on the remaining milestones for the project’s final investment decision, namely securing the project financing package. LNG production is estimated to start in the second half of this decade.