Galp Energia says it has invested approximately N$2.1 billion towards upstream projects in Namibia in the first six months of 2024.
During the six months, the Group made tangible and intangible investments amounting to €564 million, of which upstream investments amounted to €389 million.
“The investment essentially related to projects in Brazil (€273 million) and Namibia (€116 million) N$2.1 billion, industrial and midstream (€90 million), renewables (€51 m), commercial (€20 million) and corporate (€14 million) for the six months ended 30 June 2024,” said Galp.
Meanwhile, in the second quarter of 2024, capital expenditure totalled €241 million with Namibia representing circa one-third of upstream capital expenditure (Galp 80% stake) during the period.
Galp Energia CEO Filipe Silva said investments in upstream were mostly directed to projects under execution and development in the Brazilian pre-salt, namely Bacalhau, as well as the exploration campaign in Namibia.
“Looking at capex levels, Mozambique’s divestment, coupled with a slower execution on renewables, gives us enough headroom to tackle the next exploration and appraisal campaign in Namibia whilst maintaining net capex well controlled,” he said.
In Namibia, Silva said Galp is thrilled with the potential of the discoveries and is now moving rapidly into the next phase, aiming to further de-risk the asset and confirm its commerciality.
“We are delivering steadfast progress to have all the remaining services and equipment necessary to spud later this year the first well of the next exploration & appraisal campaign,” he said.
The Group operates across four different operating segments based on the types of products sold and services rendered, upstream, industrial and midstream, commercial and renewables.
The upstream segment represents Galp’s presence in the upstream sector of the oil and gas industry, which involves managing all activities relating to the exploration, development and production of hydrocarbons, mainly focused in Brazil, Mozambique, Namibia and Angola.
In April 2024, Galp (80% operator) and its partners NAMCOR and Custos (10% each) completed the first phase of the Mopane exploration campaign, which included two exploration wells and a drill stem test.
“All acquired data from the current Mopane drilling campaign will be analysed and integrated into an updated reservoir model. The model will serve as the basis to refine Galp’s near-term drilling plan to further explore, appraise and develop the wider Mopane complex,” Silva said then.
The company plans to undertake an exploration campaign spanning three years involving the drilling of 10 exploration and appraisal wells, along with flow testing.
Additionally, conducting a 3D towed streamer seismic survey campaign covering approximately 4,000 square kilometres in PEL 83.
“Galp plans a further 3D towed streamer seismic survey campaign in PEL 83, towards the end of 2024 and quarter 1 of 2025, which will be around 4,000 square kilometres. Galp will also undertake an OBN seismic acquisition within the area where the 3D towed streamer seismic activities will be conducted, either during the same time or at a later stage to be determined,” said an ESIA notice.
