Galp will need partner to help develop Namibia oil block

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Galp will need partner to help develop Namibia oil block

10:19 CAT | 01 May 2024

Image: Reuters

Galp Energia will need a partner to develop a prolific oil find in Namibia as it is “beyond its financial means” to keep an 80% stake in the exploration block that includes the Mopane field, CEO Filipe Silva said on Tuesday.

We will prioritise a partner that is keen to develop quickly the prospects and that will fund the capex,” Silva told a conference call with analysts.

The company said last week that it had completed the first phase of exploration in the Mopane field and estimated it could have at least 10 billion barrels of oil.

Sources told Reuters last week that Galp has launched the sale of half of its 80% stake in the exploration block.

“We are confident that Namibia will bring another exciting growth avenue to Galp,” the CEO said, adding that the Mopane complex “is going to be a multiple FPSO development” that would require tens of billions of dollars, which “is not expected to be funded by Galp”.

FPSOs are vessel-based production and storage platforms.

“It is critical the market understands that when we start with (a stake of) 80%, we have a lot of leeway to go down, be diluted over time and bring somebody else to fund the project,” he said.

Galp also needs to de-risk a multibillion-dollar natural gas project in Mozambique’s Rovuma basin, he said.

Galp holds a 10% stake in a consortium exploring for natural gas in Rovuma’s Area 4, in the northern Mozambique region of Cabo Delgado, which has been the target of attacks by militants.

The main shareholder with a 70% stake is Mozambique Rovuma Venture, comprising Exxon Mobil Corp, Italy’s ENI, and China National Petroleum Corporation (CNPC).

Korea’s Kogas and Mozambique’s National Hydrocarbons Company ENH have 10% each.

Source: Reuters