Galp Energia says it invested approximately N$2.4 billion (€117m) towards upstream projects in Namibia in 2023, with roughly 61.09% of the total expenditure directed towards local suppliers.
According to Galp Energia CEO Filipe Silva, with over 60% of divisional capex dedicated to growth, Galp’s portfolio encompasses promising ventures, including substantial gas resources in Mozambique and exciting exploration assets in Namibia and São Tomé and Príncipe.
“We recently confirmed the existence of a high-quality hydrocarbon system in Namibia, thus creating the basis for what could become another major growth avenue for Galp,” Silva said.
Galp’s exploration assets in Namibia centre on Petroleum Exploration Licence No 83 (PEL 83), encompassing a vast area in the Orange Basin.
The company holds an 80% working interest in the licence, in collaboration with NAMCOR (10%) and Custos Energy (10%).
The exploration campaign, initiated in November 2023, marked Galp’s return to drilling in Namibia after a hiatus since 2013. The campaign’s objective was to assess the Mopane prospect, involving the drilling of two exploratory wells and one contingent Drill Stem Test (DST).
Recent milestones included the successful drilling and logging of the first exploration well, Mopane- 1X, which confirmed the presence of significant columns of light oil in high-quality reservoir-bearing sands
Subsequent drilling at the Mopane-2X well further bolstered Galp’s position, with the discovery of additional light oil reservoirs.
“We will continue expanding our businesses across the energy value chain, prioritising investment in higher return opportunities and those that consolidate our integrated business model,” Silva said.
Figures from the Integrated Management Report 2023 revealed that the company’s total capex, not considering divestments, totalled €1,076m (N$21.8 billion) in 2023.
Meanwhile, upstream accounted for 54% of total investments, whilst the downstream activities represented 29% and Renewables & New Businesses 13%. The report noted that upstream investments were mainly directed to Brazil, namely Bacalhau and BM-S-11, as well as the start of the exploration campaign in Namibia.
