Galp Energia has reaffirmed its commitment to Namibia’s energy sector, investing N$2.3 billion in oil and gas projects during the first nine months of 2024.
Namibia is emerging as a focal point for Galp’s strategic upstream investments, receiving a substantial portion of the company’s overall €850 million (N$16.4 billion) budget for asset development.
“The Group has made tangible and intangible investments amounting to €850 million, of which €524 million was directed towards upstream projects, predominantly in Brazil (€405 million) and Namibia (€119 million),” said the Portuguese company.
Namibia’s investment allocation according to a Galp report, accounting for nearly a quarter of Galp’s upstream capital expenditure, is part of an active exploration campaign where Galp holds an 80% stake.
Galp’s overall RCA EBITDA reached €2,609 million over the nine months, reflecting a robust performance amid challenging refining market conditions.
Excluding contributions from Coral South FLNG in Mozambique, Galp achieved an operating cash flow of €1,745 million, underscoring the financial resilience of ongoing projects in Namibia and Brazil.
“Galp’s RCA Ebitda was €2,609 million, while operating cash flow was €1,745 million, reflecting a robust operating performance and despite a less supportive refining environment,” Galp noted.
The company’s total net capital expenditure (capex) for the period reached €290 million, with economic capex amounting to €792 million.
Galp emphasised its allocation of capital to upstream initiatives, particularly Brazil’s Bacalhau project and Namibian exploration efforts, both supported by proceeds from divestments, including the Angola upstream exit.
“Net capex totalled €290 million, with economic capex of €792 million, mostly directed towards the upstream projects under development in Brazil and the exploration campaign in Namibia,” Galp said.
Galp’s free cash flow amounted to €1,032 million, maintaining a stable net debt of €1.5 billion compared to year-end 2023.
The financial stability has allowed Galp to distribute €97 million in dividends to non-controlling interests and €419 million in dividends to shareholders, along with a €324 million share buyback initiative during the period.
“Galp’s strong operating performance and robust financial position support its key financial guidance for 2024, with Group Ebitda and operating cash flow still expected >€3.1 billion and >€2.0 billion, respectively, despite a volatile macro context,” Galp said.
Galp’s cash flow from operations reached €1.432 million, after accounting for a €-110 million inventory effect and a €-195 million working capital build, which included €36 million from the exploration carry of PEL-83 partners in Namibia.
Nine months into 2024, Galp allocated 60% of its capex to upstream and 18% to industrial projects, while renewables and commercial operations accounted for the remaining 22%.
The report emphasised that Galp’s Namibian exploration efforts represented a significant portion of this upstream focus.
“Investments in upstream were mostly directed towards the execution of projects in the Brazilian pre-salt, namely Bacalhau and Tupi & Iracema, as well as the exploration campaign in Namibia,” the report said.
Galp has launched a second exploration and appraisal campaign in Namibia’s Orange Basin, targeting blocks 2813A and 2814B under Petroleum Exploration Licence 83.
Galp holds an 80% stake, with Custos Energy and NAMCOR each holding 10%. The campaign began with Saipem’s Santorini drillship at the Mopane 1-A well, spud on 23 October 2024.
This well is part of a planned four-well programme aiming to deepen understanding of the Mopane complex. Earlier in 2024, the Mopane-1X and 2X wells yielded significant light oil findings.
