Galp realigning for PEL 83 development "Galp said most of its capital spending would be allocated to growth projects, namely Namibian drilling activities and the development of the Bacalhau field in Brazil.
This reflects a departure from recent years, when the Lisbon-based company was heavily focused on its renewables investments."
"Galp said it is “reassessing its decarbonisation targets considering the potential effect of Mopane’s discoveries (at least three reservoirs were intercepted) and the slow execution of renewable developments, along with the forthcoming standards for target setting and measurement”.
https://www.upstreamonline.com/energy-transition/
Galp's public business model has been to wean itself from oil exploration and pursue nenewables including hydrogen processing as "green energy".
Has Galp become so optimistic regarding PEL 83, Mopane and the potential for"decades of growth"
that they are shifting their capital towards more oil development?
Obviously, they are very pleased with the initial PEL 83 exploration and they are raising enough capital to pursue the development of PEL 83.
" ...the company sold its Angolan upstream assets earlier this year for about €790 million and struck a $1.7 billion deal to sell its 10% stake in Area 4 offshore Mozambique, which hosts the producing Coral South liquefaction project, to Adnoc.
In addition, during the second quarter, Galp signed an agreement to sell its marketing business in Guinea-Bissau to Zener International Holding, with completion expected in 2024 or 2025.
Galp chief executive, Filipe Silva, said: “These actions allow us to crystallise value, reduce risk and focus on higher return projects aligned with Galp’s strategy [to] continue de-risking and growing our upstream from low-cost and low carbon intensity projects, whilst transforming our integrated mid and downstream positions.”
Farrell