Source: Business Express
Portuguese energy giant Galp has announced a strategic refocusing of its business, placing its upstream oil and gas operations—with Namibia as a cornerstone—firmly at the centre of its growth plans. This comes alongside a planned merger of its European refining and retail assets, a restructuring that analysts say sharpens Galp’s profile as a dedicated explorer and producer, with the Namibian offshore poised to be a primary engine for its future.
The company’s co-chief executive, Joao Diogo Marques da Silva, explicitly dismissed market speculation that the refining spin-off might lead to a sale of the exploration and production unit. Instead, he emphasised a narrative of growth, stating the upstream division holds “a unique story” built on a “very strong asset base.” For Namibia, this translates into a reinforced commitment from a key partner in the Orange Basin, home to the giant Venus discovery.
“We have built growth, a unique story with a very strong asset base,” Marques da Silva told Reuters at the World Economic Forum in Davos. This asset base is increasingly defined by its Namibian portfolio. While the company anticipates a significant 10% production increase in 2026 from its Brazilian operations alone, the untapped potential in Namibian waters represents the next major frontier for the company’s expansion.
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 the exploration teams in Brazil and Namibia from the complexities of the downstream merger.
This separation allows Galp’s leadership to concentrate capital and expertise on accelerating development in basins like the Orange Basin. The message is clear: the high-stakes, high-reward world of deepwater exploration offshore Namibia is not a side project for Galp but a core pillar of its identity and future valuation. The company may even consider a public listing for the merged downstream businesses in a few years, a move that would further delineate the pure-play upstream growth story.
For Namibia, Galp’s strategic clarity is a significant vote of confidence. It arrives at a critical juncture as the country transitions from a thrilling exploration phase to the monumental task of commercial development. Having a major international operator like Galp, which is simultaneously deepening its commitments in Brazil’s prolific pre-salt fields, declare Namibia a focal point for growth assures continuity of investment and technical expertise. It signals to the global energy market that Namibia’s oil story is moving decisively from discovery to development.
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. This regional focus further solidifies the importance of its Namibian position as a strategic geographic and operational hub.
As the Namibian government and its partners navigate the complexities of crafting a regulatory and fiscal framework for production, the stability and intent of its international partners are paramount. Galp’s restructure, which explicitly protects and prioritises its upstream portfolio, provides a measure of that stability. It 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 the decades to come. The spotlight on the Orange Basin, it seems, will only grow brighter.
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Author: admin
Managing the Namibia Oil and Gas Platform