Source: Namibia Business Express
Portugal’s Galp Energia is poised to unveil the results of its latest exploration well in Namibia’s Mopane complex, a move that could significantly expand the scope of its offshore development plans in the region. The company, which has already identified substantial reserves in the AVO-1 reservoir, is now targeting new plays in the AVO-10 and AVO-13 reservoirs through its ongoing Mopane-3X exploration well. If successful, this well could unlock a new development hub within the vast Mopane complex, which is estimated to hold resources of up to 10 billion barrels of oil equivalent.
Galp’s interim co-chief executive officer, Maria Joao Carioca, confirmed during the company’s fourth-quarter earnings webcast on Monday that results from the Mopane-3X well are expected “really soon.” The well, the fifth drilled in Petroleum Exploration Licence (PEL) 83, is a critical step in Galp’s strategy to establish multiple development phases in the Mopane complex. “We are still drilling, but we expect some results really soon,” Carioca told analysts, underscoring the potential significance of the findings.
A strategic expansion in the mopane complex
The Mopane complex, located offshore Namibia, has emerged as one of the most promising exploration areas in recent years. Galp’s previous wells in the northwest region of the complex have already confirmed the presence of substantial reserves in the AVO-1 reservoir, laying the groundwork for the first phase of development. However, the Mopane-3X well represents a strategic pivot toward exploring additional reservoirs, including AVO-10 and AVO-13, which could support a second development hub.
Carioca emphasized that Galp is “working really hard on the feasibility of one development concept in that (northwest) hub,” which is expected to tap resources beyond the AVO-1 reservoir. This approach aligns with the company’s broader vision of creating a multi-phase development strategy that maximizes the potential of the Mopane complex. The integration of data from the ongoing drilling campaign and a recently acquired 3D seismic survey is expected to provide further clarity on the development concept by the end of next month.
Floating production solutions on the horizon
As Galp advances its development plans, the company is reportedly exploring the possibility of deploying a floating production, storage, and offloading (FPSO) vessel in the Mopane complex. Industry sources indicate that Galp has engaged with contractors in the FPSO sector to assess the feasibility of securing a vessel, should an FPSO be deemed the optimal development solution. This move underscores the company’s commitment to leveraging cutting-edge technology to unlock the full potential of its Namibian assets.
The use of an FPSO would align with industry trends in deepwater developments, offering flexibility and scalability in production. However, Galp has yet to make a final decision on the development concept, as it continues to evaluate the data from its exploration activities. “We are still gathering and integrating data from our drilling campaign and our recently acquired 3D seismic survey,” Carioca noted, adding that much of this work is expected to be finalized by the end of March.
No rush on farm-out deal
Despite the significant progress in its exploration efforts, Galp remains in “no rush” to conclude a farm-out deal for its PEL 83 licence. The farm-out process, which began in 2024, has been delayed as the company focuses on solidifying its understanding of the Mopane complex’s resource potential. Carioca reiterated that Galp is not under pressure to expedite the process, citing the company’s strong financial position as a key factor in its decision-making.
“A farm-down is obviously a natural solution here, but we’re not in a rush,” Carioca said. “We’ve built a very solid balance sheet, a very solid position. There’s no firm timeline defined at this time.” This measured approach reflects Galp’s confidence in its ability to independently advance its Namibian projects while seeking the right partners to optimize value creation.
Namibia’s rising star in offshore exploration
Galp’s activities in Namibia are part of a broader wave of interest in the country’s offshore potential. The Mopane complex, in particular, has garnered attention for its vast resource base and strategic location. With estimates of up to 10 billion barrels of oil equivalent, the complex represents a transformative opportunity for both Galp and Namibia’s burgeoning energy sector.
The success of the Mopane-3X well could further cement Namibia’s status as a global exploration hotspot, attracting additional investment and expertise to the region. For Galp, the development of the Mopane complex is a cornerstone of its growth strategy, offering the potential to significantly boost its reserves and production capacity.
Looking ahead
As Galp awaits the results of its latest exploration well, the company is laying the groundwork for a multi-phase development strategy that could reshape its portfolio and solidify its position as a key player in Namibia’s offshore sector. The integration of drilling and seismic data, coupled with ongoing feasibility studies, will provide critical insights into the optimal development concept for the Mopane complex.
In the meantime, Galp’s deliberate approach to the farm-out process underscores its commitment to maximizing value for shareholders while maintaining financial flexibility. With a strong balance sheet and a clear strategic vision, Galp is well-positioned to navigate the complexities of offshore development and capitalize on the immense potential of the Mopane complex.
As the global energy landscape continues to evolve, Galp’s activities in Namibia serve as a testament to the enduring allure of frontier exploration and the transformative impact of major discoveries. The coming months will be pivotal for Galp as it seeks to unlock the full potential of its Namibian assets and chart a course for long-term growth.
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Author: admin
Managing the Namibia Oil and Gas Platform