Galp Energia Resumes Talks for Namibian Discovery Development
Portugal’s Galp Energia has announced that it is back in discussions with potential partners as it looks to advance the development of a recent discovery in Namibia. This comes after the company reported a 29% decrease in adjusted core profit for the first quarter.
In February, Galp revealed a significant presence of light oil and gas condensate in the Mopane field offshore Namibia, marking a promising find in the region. Co-CEO Maria Joao Carioca described the discovery as unlocking a new exciting area within Mopane and stated that feasibility studies will be progressing in the upcoming months.
Galp is also in the process of seeking a partner to acquire a portion of its 80% stake in Mopane’s Petroleum Exploration Licence 83, with the intention of having the partner become the operator of the project. Carioca emphasized the company’s preference for a partnership and mentioned that discussions with interested parties are ongoing.
Despite the drop in first-quarter adjusted core profit, Galp highlighted its operational resilience in the face of challenges such as falling oil output and refining margins. The company reported a 41% decrease in quarterly adjusted net profit compared to the previous year, but still exceeded analysts’ expectations.
Galp’s upstream unit, which includes stakes in deepwater fields off Brazil’s coast, saw a 32% decline in core profit in the first quarter. The company maintained its full-year production guidance of more than 105,000 barrels per day, citing stoppage days during the first quarter that already accounted for over 40% of the annual maintenance plan.
In terms of production, Galp reported a 3% decrease in working interest oil and gas production in the first quarter, with Brent crude prices averaging $75.7 per barrel compared to $83.2 a year earlier.
Despite challenges in the market environment, Galp remains optimistic about its prospects and is actively pursuing opportunities for growth and development in Namibia and beyond.
Overall, Galp’s resilience and strategic approach to partnerships and project development position the company well for future success in the energy sector.
(Source: Reuters)