Latest news with #Area4
Zawya
11-04-2025
- Business
- Zawya
United Arab Emirates (UAE) Drives Strategic Push into Africa's Oil & Gas Industry
The UAE's investment footprint in Africa's oil and gas sector has expanded with its recent entry into Mozambique's Rovuma Basin. XRG, the international energy investment arm of Abu Dhabi National Oil Company, made headlines last month by entering Mozambique's lucrative gas market, underscoring the UAE's expanding influence in Africa's energy sector. The move is a key part of the country's strategy to strengthen its position as a major player in Africa's energy landscape, highlighting its confidence in the region's long-term growth potential. XRG Expands into Mozambique, Egypt XRG's acquisition of a 10% interest in the Area 4 concession in Mozambique's offshore Rovuma Basin signifies more than just an expansion for the company – it reflects a broader geopolitical and economic vision that aligns with the UAE's strategic interests. The basin is one of the world's most significant natural gas reserves, with the potential to shape global LNG markets in the coming decades, driven by integrated gas developments with a production capacity exceeding 25 MTPA. The acquisition includes stakes in the operational Coral South FLNG and the planned Coral North FLNG and Rovuma LNG projects. XRG's decision to invest in the region underscores its understanding of the growing demand for energy resources and the importance of securing diverse sources to ensure energy security. In December 2024, XRG partnered with bp to establish a new regional gas platform and joint venture, Arcius Energy, focused on the development of gas assets in Egypt. The company aims to build a world-scale integrated gas and chemicals portfolio to meet rising global demand, leveraging Africa's gas-rich hotspots to achieve this. Through these investments, the UAE is positioning itself as a leading partner in Africa's energy future, which will likely continue to strengthen its economic and diplomatic ties with the continent. UAE Becomes Africa's Largest Investor The UAE's push into Africa's oil and gas sector is part of a broader trend that has seen it emerge as Africa's largest investor, surpassing even China. As reported by the Middle East Monitor, the UAE has overtaken China as the continent's biggest source of foreign direct investment, with investments from Emirati companies totaling $110 billion between 2019 and 2023. This shift marks a significant milestone in the UAE's strategy to diversify its investment portfolio and expand its influence across Africa, a continent rich in untapped potential and actively seeking foreign capital to drive its growth and development. With investments spanning key sectors like infrastructure, energy and technology, the UAE has strategically positioned itself as an economic partner of choice for African nations. These investments include green hydrogen projects in Mauritania; Masdar's $2-billion commitment to renewable energy in Africa through 2030; and the expansion of major players like Dubai's DP World - which operates six African ports - and Abu Dhabi Ports, which has extended its presence into Guinea, Egypt and Angola. The UAE's growing investment in Africa's oil and gas industry aligns with the country's broader goals of securing reliable energy supplies, diversifying its own energy portfolio and fostering long-term economic partnerships with African nations. AEW 2025: A Platform for Gulf Investors The UAE's accelerated investments in Africa's energy sector will take center stage at the upcoming African Energy Week (AEW): Invest in African Energies 2025 in Cape Town. The conference will provide a platform for Emirati and Gulf investors to engage with key stakeholders, discuss strategies for expanding in Africa and explore new opportunities within the continent's rapidly evolving energy sector. With a focus on oil, gas and clean energy, AEW 2025 will be a critical gathering for investors like XRG to showcase their projects, forge partnerships and deepen their involvement in Africa's energy development. AEW 2025 will also serve as a venue for African energy leaders to discuss the vital role of private investment in unlocking the continent's energy potential. As a leading investor, the UAE's growing influence in Africa's oil and gas sector will be highlighted at the event, reinforcing its position as a key partner in driving investment, innovation and collaboration. Distributed by APO Group on behalf of African Energy Chamber. AEW: Invest in African Energies is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit for more information about this exciting event.
Zawya
28-03-2025
- Business
- Zawya
XRG continues global expansion with entry into Mozambique's Rovuma Basin LNG projects
ABU DHABI - XRG has reached deal completion on its acquisition of Galp's 10 percent interest in the Area 4 concession in Mozambique's Rovuma Basin, initially announced in May 2024. This strategic investment, XRG's first in the country, reflects the company's goal of building a world-scale, integrated gas portfolio to meet growing global demand while fostering a smarter, cleaner and more sustainable energy future. The Rovuma Basin, one of the largest gas discoveries in the past fifteen years, offers XRG access to pioneering LNG projects with a combined potential production capacity of more than 25 million tonnes per annum (mtpa). This acquisition includes stakes in the operational Coral South Floating LNG (FLNG), the planned Coral North FLNG and Rovuma LNG's onshore development projects. Khaled Salmeen, XRG's Chief Operating Officer, said, "We are proud and excited to be part of the responsible development of Mozambique's world-class Rovuma Basin. Together with the Government of Mozambique and our partners, we are looking forward to sharing our expertise, adding value and accelerating these developments towards their full potential LNG capacity. This milestone investment will enhance XRG's ability to provide energy solutions to meet rising demand and help unlock sustainable economic growth." Coral South FLNG, the first development of its kind deployed in African waters, has a capacity to produce 3.5 mtpa of LNG through utilising cutting-edge technology with a strong focus on energy efficiency. Coral North FLNG, with an imminent final investment decision (FID), would produce an additional 3.5 mtpa of LNG offshore. Both offshore projects are led by Eni. Meanwhile, the onshore Rovuma LNG Phase 1 Project, led by ExxonMobil, is expected to complete its front-end engineering design (FEED) phase in 2025 based on an innovative modular electric drive design to significantly reduce the carbon intensity of its anticipated 18 mtpa of LNG production. The acquisition strengthens XRG's growing international portfolio across the energy spectrum. Focused on driving sustainable economic growth and long-term value creation, XRG targets three key growth pillars: gas, chemicals, and low-carbon energy solutions. Central to XRG's long-term strategy are gas and LNG, with recent strategic acquisitions in the United States, Mozambique, Azerbaijan and Egypt.
