Galp confirms new oil discovery in Namibia. Results “open up new exploration opportunities”

Galp reported on Tuesday a positive result from the drilling of the fifth oil well in the Mopane complex in Namibia, located 18 kilometres from the first well in the oil block known as Petroleum Exploration Licence 83 (PEL 83).

In a statement sent to CMVM, the authority that regulates the financial markets in Portugal, the Portuguese company said it had drilled, collected samples and logged the fifth well (Mopane-3X) “successfully”, with preliminary data confirming “significant columns of light oil and condensate gas” in the two reservoirs identified at the end of December and in the deeper sands, at a depth of around 1,200 metres.

“Log measurements in the reservoirs confirm good porosity, high pressures and high permeabilities. Initial fluid samples show low viscosity in the oil and minimal concentrations of CO2 and H2S. The samples have been sent for laboratory tests”, says the company, which is co-chaired on an interim basis by Maria João Carioca and João Diogo Marques da Silva.

In this new update on the exploration and appraisal of oil assets in the African country, in which it owns 80% — the partners in this project are NAMCOR and Custos (10% each) — Galp says that “higher than expected pressures and preliminary results open up new exploration and appraisal opportunities in the south-east region of Mopane”.

“All the new data will be integrated into the model and support the planning of new potential activities”, adds the Portuguese oil company, which saw profits fall by 4% to 961 million euros in 2024. Even so, it was the second best year ever for the company, with management proposing that shareholders increase the dividend by 15%, to 0.62 euros per share.

In the aftermath of the results presentation, in a call with analysts, Maria João Carioca said that Galp is still in no hurry to find a partner for the exploration project in Namibia. “We’re still looking for the solution that gives us the certainty that we’ll get value out of the asset. Given its size and potential, we believe that a partial sale [farm down] is obviously a natural solution”, said the co-CEO.

The commercial potential of this 80% position in the oil exploration block in Namibia has attracted the attention of industry giants since it was made public in April last year. Galp intends to maintain a significant position, but it has already been reported by international agencies that the Portuguese company is considering selling a 40% share of these assets.