Portuguese energy company Galp has launched international arbitration proceedings against Mozambique over a tax dispute linked to the sale of its stake in a major offshore gas project, according to the International Centre for Settlement of Investment Disputes (ICSID).
The case, registered on June 26, stems from Galp’s 2024 sale of its 10% interest in the Area 4 Rovuma Basin project to XRG, a subsidiary of Abu Dhabi National Oil Company (ADNOC).
The dispute centres on the capital gains tax payable from the transaction. Mozambican authorities argue that Galp underpaid its tax obligations, while the company maintains that the approximately $881 million it received after completing the deal in 2025 already included the required capital gains tax.
Mozambique’s tax authority had not responded to requests for comment at the time of publication.
The Area 4 Rovuma Basin is one of Africa’s largest natural gas developments. It includes Eni’s operational Coral South floating liquefied natural gas (FLNG) facility, the Coral North FLNG project currently under development, and a proposed onshore LNG project led by ExxonMobil.
Goodness Anunobi
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