Galp Energia invests N$2,1 billion in Namibian oil sector

Galp Energia invested N$2,1 billion into its Namibian upstream oil projects during the first half of 2024.

Galp Energia chief executive Filipe Silva expressed his enthusiasm regarding the discoveries made in Namibia and emphasised the company’s swift progression into the exploration phase.

The primary objective is to further mitigate risks associated with the asset and definitively establish its commercial viability.

“This strategic allocation underscores Galp’s commitment to unlocking Namibia’s hydrocarbon potential and reinforces the country’s burgeoning position within the global energy landscape,” Silva says.

He says the total upstream investment for the group amounted to €389 million, with a substantial portion (€116 million) earmarked for Namibian projects.

According to Silva, Namibia’s growing importance represented roughly one-third of the company’s upstream capital expenditure in the second quarter of 2024, with Galp holding an 80% stake in the project.

“We are making steady progress in securing all essential services and equipment to commence drilling the inaugural well of the next exploration and appraisal campaign later this year,” he says.

According to Silva, this significant investment in Namibia aligns with Galp’s broader upstream strategy, which focuses on managing exploration, development and production activities in key regions like Brazil, Mozambique and Angola.

“In Namibia, Galp partnered with Namcor and Custos to successfully complete the first phase of the Mopane exploration campaign in April 2024,” he states.

He says this phase encompassed the drilling of two exploration wells and the execution of a drill stem test.

“All data acquired will undergo a thorough analysis and be integrated into a comprehensive reservoir model,” Silva says, adding that this model will serve as a critical foundation for refining Galp’s near-term drilling plan to further explore, appraise and develop the extensive Mopane complex.

Galp’s ambitious plans for Namibia encompass a three-year exploration campaign that includes the drilling of ten exploration and appraisal wells, accompanied by flow testing, the undertaking of a 3D towed streamer seismic survey covering approximately 4 000 square kilometres within PEL 83 and the acquisition of additional 3D seismic data utilising the Ocean Bottom Node technique within the same area.