Portuguese energy giant Galp has announced a strategic refocusing of its business, placing upstream oil and gas operations—with Namibia as a cornerstone—firmly at the center of its long-term growth plans, dismissing speculation about potential asset sales.
The company’s co-chief executive, Joao Diogo Marques da Silva, explicitly rejected market speculation that a planned merger of European refining and retail assets might lead to a sale of the exploration and production unit. Instead, he emphasized that the upstream division holds a unique story built on a very strong asset base, with Namibia’s Orange Basin and the giant Venus discovery positioned as primary engines for future growth.
The corporate restructuring will see Galp combine its downstream operations with those of private equity-backed Moeve of Spain, creating two separate European entities for retail and refining. Galp would retain a 50% stake in the retail venture and approximately 20% in the refining entity. Crucially, this transaction excludes the entire upstream division, insulating exploration teams in Brazil and Namibia from downstream complexities.
While the company anticipates a significant 10% production increase in 2026 from its Brazilian operations, the untapped potential in Namibian waters represents the next major frontier for expansion. Marques da Silva also hinted at a potential return to Angola as opportunities arise, indicating Galp’s ambition to be a dominant player in Southern Atlantic basins.
For Namibia, Galp’s strategic clarity provides a significant vote of confidence as the country transitions from exploration to commercial development. The restructuring confirms that for one of the key stakeholders in the Venus discovery, the long-term view of Namibia is not merely as an exploration hotspot but as a foundational production asset for decades to come, underpinning the company’s upstream revenue and growth trajectory.
Source: namibiaoilandgas.com