Galp searches for oil

Galp, which was awarded two new offshore blocks in Namibia last year, recently formalised joint-venture agreements with its local partners and set up a permanent office in Namibia, paving the way for a new exploration campaign due to start at the end of the year. The licences, Prospecting Exploration Licence (PEL) 82 and PEL 83, cover a total area of around 20 000 square kilometres and were awarded by the Ministry of Mines and Energy in August 2016 to a consortium that includes Galp, the National Petroleum Corporation of Namibia (Namcor) and Custos Investments, a Namibian company that has been a partner of Galp in Namibia since 2012. The blocks are located in what are considered to be 'frontier basins', where a first commercial discovery is yet to be made. Initial exploration activities will include geological and geophysical studies and the acquisition of new three-dimensional seismic surveys, during the initial exploration period of three years in PEL 82, and four years in PEL 83. If these efforts are successful and the consortium moves on to the subsequent exploration stages, further activities may include the drilling of exploration wells. Galp, which is Portugal's largest publicly traded company, has been present in Namibia since 2012, when it acquired a 14% stake in three blocks operated by HRT at the time and that included PEL 23, 24 and 28. Following Galp's entry, three exploration wells were drilled in 2013, with a total investment by the consortium of N$3.75 billion. Although no commercial discoveries were made, these wells provided encouraging technical information, which has led Galp to renew its commitment to pursuing exploration efforts in the country by acquiring the two new licences. The current licences cover similar areas to those of the previous PEL 23, in the Walvis Basin, and PEL 28, in the Orange Basin, and they mark a step-change in Galp's commitment to Namibia, with the company increasing its stake to 80% of the consortium and taking on the role of operator. Namcor and Custos have both taken each a 10% stake in the consortium. As part of this increased commitment, Galp has established an office in Windhoek. The three partners recently signed two Joint Operating Agreements (JOA) that govern how they will work together during the project and allow the companies to focus on moving ahead with exploration activities in Namibia, which include preparations for the start of seismic operations and applying for the required environmental permits.STAFF REPORTER

Galp searches for oil

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Namibian Sun 2025-08-06

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Galp searches for oil

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Namibian Sun 2025-08-06

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