Portuguese energy company Galp has reached a farm-in agreement with KE STP Company, a Shell affiliate, for the acquisition of a 27.5% stake in São Tomé and Príncipe’s Block 4, forming a joint venture with Shell, Petrobras and ANP-STP. The agreement expands Galp’s presence offshore the Central African island nation, adding another early-stage exploration block to its portfolio through a limited financial commitment.
Shell operates Block 4 with a 30% stake, alongside Petrobras with 27.5%, ANP-STP with 15%, and now Galp with 27.5% working interests. The development solidifies Galp’s exploration position in a geography where the company has been a pioneer since 2015.
Galp currently holds interests in three offshore exploration blocks in the Muni River Basin, located in ultra-deep waters off São Tomé and Príncipe. The company operates Block 6, where it holds a 45% interest alongside Shell and the national oil company ANP-STP. In 2022, Galp drilled the country’s first offshore exploration well, Jaca-1. While no commercially viable accumulations were discovered, the well revealed the presence of an active petroleum system that was thoroughly sampled and studied.
In addition to Block 6, Galp holds a 41.2% operating position in Block 12, in partnership with Equator and ANP-STP, and a 20% stake in Block 11, operated by Shell, with Petrobras and ANP-STP as partners. Over the years, Galp and its partners have carried out extensive seismic campaigns and geological studies across these blocks to evaluate the region’s hydrocarbon potential. While exploration remains at an early stage, Galp’s entry into Block 4 demonstrates its long-term commitment towards the development of the country’s offshore resources.
Source: oedigital.com