ADNOC's XRG Acquires 10% Stake in Mozambique's Rovuma Basin for Global Gas Expansion

The United Arab Emirates' energy giant, ADNOC, through its subsidiary XRG, has recently completed the acquisition of a 10% stake in the Rovuma Basin Block 4 area in Mozambique from Portugal's energy company Galp. This acquisition marks XRG's first investment in Mozambique and a significant step in its global expansion of natural gas investments.

The Rovuma Basin has been a hotspot for global oil and gas exploration in recent years, boasting abundant natural gas resources. Through this acquisition, XRG will participate in several key liquefied natural gas (LNG) projects, including the Coral South Floating Liquefied Natural Gas (FLNG) production, storage, and offloading facility, the Coral North FLNG project, and the Rovuma LNG onshore development project. These projects collectively have the potential to produce over 25 million tons of LNG annually.

Khaled Salmeen, the Chief Operating Officer of XRG, expressed his enthusiasm about the investment, stating, "We are delighted to participate in the development of the Rovuma Basin. This investment will further enhance XRG's ability to provide energy solutions to the global market."

Among the three projects, the Coral South FLNG is already operational and is the first FLNG project deployed in African waters, with an annual production capacity of approximately 3.4 million tons of LNG. The Coral North FLNG project is nearing its final investment decision (FID) stage and is expected to add another 3.4 million tons of annual production capacity. Both projects are operated by Italy's Eni Group.

The Rovuma LNG onshore Phase 1 project is led by ExxonMobil and is expected to complete its front-end engineering design (FEED) this year. This project will utilize a modular electric drive design, aiming to achieve an annual production capacity of 18 million tons of LNG while significantly reducing carbon emissions.

This acquisition further diversifies XRG's global energy investment portfolio. Established at the end of 2024, XRG has an estimated valuation of over 80 billion dollars and focuses on three key growth areas: global chemicals, international natural gas, and low-carbon energy.

Since its inception, XRG has partnered with British energy giant bp to establish the joint venture Arcius Energy, creating an international natural gas platform with initial operations concentrated in Egypt. Additionally, in March, during the CERAWeek Global Energy Forum in Houston, ADNOC's CEO Sultan Al Jaber announced that XRG plans to make significant investments in the U.S. natural gas sector in the coming months.