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https://www.upstreamonline.com/field-development/galp-ceo-s-sudden-departure-may-hit-timeline-for-namibia-farm-down-say-analysts/2-1-1761694

The sudden exit of Filipe Silva as chief executive of Portuguese oil major Galp Energia may hinder the timeline for the planned farm-down of the company’s huge Namibia discovery, analysts said on Wednesday.

Silva notified the chairman of the board of his resignation from his roles as chief executive and vice president of the board of directors, departing with immediate effect,Galp said in a statement late on Tuesday.

Appointed chief executive in January 2023, Silva's departure follows recent reports alleging the company was conducting an investigation into his relationships with internal staff.
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Published 8 January 2025, 08:32

Portuguese oil major Galp Energia announced that Filipe Silva has resigned from his role as chief executive with immediate effect, prompting speculations from analysts on whether the company could become a takeover target.

Galp said in a statement late on Tuesday that Silva notified the chairman of the board of his resignation from his roles as chief executive and vice president of the board of directors.

The statement said Silva cited family reasons for his resignation.

The news follows recent reports by local media alleging the company was conducting an investigation into its chief executive’s relationships with internal staff.

Galp chairman Paula Amorim commented: “I would like to emphasise the contribution Filipe has made to the Company over the last 12 years, a period during which his dedication was important for Galp’s growth.

“Galp’s Executive Committee remains in the hands of a highly qualified team, that will ensure the execution and implementation of the company’s strategy.”

The company is due to announce the appointment of a new chief executive “in the coming days”, it said.

Silva was appointed chief executive in January of 2023, for a four-year term until 2026.

He served as the company’s chief financial officer from 2012 to 2022.

Before joining Galp, Silva was head of Deutsche Bank’s Investment Banking Coverage & Advisory business for Portugal.

Silva’s sudden exit from Galp follows reports, first published by local economic media outlet ECO in recent weeks, about an anonymous complaint made to Galp’s ethics committee about a secret relationship between the chief executive and one of his direct reports, a senior director.

Media reports stated an internal investigation was opened by the company following the ECO allegations, noting potential conflict of interest given Silva’s role.

Galp did not comment on the internal investigation or on Silva's resignation, when contacted by Upstream.

Namibia work

During his tenure at the helm the company, Silva has overseen Galp’s huge Mopane discovery, offshore Namibia, one of today’s hottest exploration plays.

In recent weeks, the Portuguese operator has been carrying out a drilling campaign to establish if Mopane is as big as originally estimated — Galp was carrying an in-place resource figure of 10 billion barrels of oil equivalent — when the discovery was made last year.

In a call last October after the third-quarter results, Silva commented that, with the current drilling campaign, “we should be able to have a very good view” on a final investment decision.

Farm-down discussions for Mopane have been taking place in the meantime for partners to join the large-scale development of the prolific area — in which Galp holds an 80% stake.

Silva suggested in October that an agreement was not expected before the end of 2025.

Brazil's Petrobras made a bid to Galp for an operating stake in Mopane, Upstream reported last month.

Takeover target?

Silva has been the fourth chief executive at Galp in recent years.

He took over from Andy Brown, who was in the role between 2021 and 2022. Previously, Carlos Gomes da Silva was in charge for six years between 2015 and 2021, and Manual Ferreira de Oliviera before him for nine years, between 2006 and 2015.

Analysts have been asking whether the departure of the chief executive creates the conditions for Galp to be a takeover target.

During his time as top boss, Silva “tidied up” Galp’s energy transition strategy, and oversaw important upstream asset sales the likes of Angola and Mozambique, noted RBC Capital Markets’ head of research, Biraj Borkhataria.

In a note, Borkhataria said the company represents an appealing M&A opportunity, given the groundwork already done on strategy and the strong position in Brazil, where Galp is developing the Bacalhau project offering “near term volume growth”.

“To us, all of this could make Galp an appealing fit for a larger major,” said Borkhataria, adding: “We continue to see CVX [Chevron] as the most logical buyer of Galp.”