"Portugal’s Galp Energia, which pivoted heavily towards renewables during Covid-19, is reassessing its decarbonisation targets in light of its huge Mopane oil and gas discovery offshore Namibia where it is preparing to kick-off another critical drilling campaign in late 2024. Earlier this year, Galp completed the first phase of its Mopane exploration and appraisal campaign in Petroleum Exploration Licence 83, discovering an estimated in-place resource of 10 billion barrels of oil equivalent and is currently in the process of farming out a major stake in the asset. In its second quarter results statement released on Monday morning, the Lisbon-based player said that Mopane’s exploration and appraisal campaign discovered “significant oil columns containing light oil in high-quality reservoir sands, potentially positioning Mopane as an important commercial discovery”.
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”.
Commenting on Mopane, chief financial officer, Maria Joao Carioca, said in a pre-recorded video message: “We continue to be thrilled with the potential of the discoveries, and we are now moving rapidly into the next phase, aiming to further de-risk the asset and confirm its commerciality. We are delivering steadfast progress to have all the remaining services and equipment necessary to spud later this year the first well of the next exploration and appraisal campaign.”
PCL Price at posting:
1.7¢ Sentiment: Buy Disclosure: Held
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