“We believe there is no legal basis for this complaint, […] we are very, very committed to finding a solution with the Mozambican Government,” stated Galp’s co-CEO João Diogo Silva during a conference call with analysts regarding the third-quarter results.
On October 8, it was reported that the Mozambican Tax Authority is claiming $175.9 million (151.5 million euros) from Galp in connection to the sale of the company’s stake in a gas project, warning that the amount “may rise” as legal proceedings are underway.
The co-CEOs, Maria João Carioca and João Diogo Silva, emphasized that Galp respects its institutional obligations and is following the lawful procedures regarding this dispute.
“Galp has been in Mozambique for over 65 years, we are very, very present in the downstream business [final stages of the production chain up to fuel station sales], it is a country we fully respect,” noted João Diogo Silva.
Maria João Carioca added that the petrol company does not foresee additional cash flow risks in the last quarter of the year due to this dispute and “sees conditions to continue its presence in Mozambique.”
The tax dispute arose following the completion of the sale in March of Galp’s 10% stake to the United Arab Emirates’ state-owned oil company ADNOC in Area 4 of the Rovuma Basin, northern Mozambique, in a deal valued at about $950 million (819 million euros).
Galp previously announced that it has formally taken the first step to resolve the taxation dispute with Mozambique’s tax authority through international arbitration.
On Thursday, the Mozambican government stated that there are no ongoing negotiations with Galp regarding the tax issue, although it trusts in the “good sense” of the Portuguese oil company.
“We trust in the good sense of the companies involved to honor their fiscal obligations,” said Mozambique’s Secretary of State for the Treasury and Budget, Amílcar Tivane, when questioned by journalists in Maputo about the dispute. He asked for “patience” and mentioned that “shortly” the Tax Authority will provide information about the resolution of the case.
Galp reported a profit of 973 million euros in the first nine months of the year, a 9% increase compared to the same period in 2024, with a record 407 million euros in the third quarter (+53%).
