‘This will be a keeper’: Galp chief upbeat on Namibia drilling prospects paving way to potential FID
"Discussing the progress of the Namibia exploration campaign, Silva said on a call with analysts on Monday: “We are drilling our third well as we speak. This will be a keeper.”
"Silva also suggested that, so far, Galp’s exploration activities have not encountered the drawbacks of high gas condensate concentrations in the wells it has been appraising — an issue that has meanwhile affected some peers exploring nearby, including TotalEnergies’ own Venus discovery."
"Silva also expanded on Galp’s strategy regarding the farm-down opportunities for Mopane and the introduction of partners to join in the large-scale development of the prolific area, for which it holds an 80% stake. What transpired on Monday is that Galp is not in a rush to sign an agreement, and the company is comfortably financed to leave a partnership agreement for a date it suits them, which appears to be towards the end of next year. “We have the financial ability, so we can avoid rushing into a transaction,” Silva said.
Meanwhile, the work is focused on de-risking “as much as we can what we have in our hands”. At the same time, Silva conceded that preliminary talks have indeed taken place, and the company has an idea of who they may want to join them. “We've had a number of discussions and we do have a short list of super credible parties that are keen on Namibia,” he said. Hinting at who may be on that shortlist, Silva added: “Some of the people we’re talking to for our project are also themselves drilling in the region.” Any tie-up agreement, however, is not expected until late 2025 at least, as the company wants to complete the four-well campaign it has currently scheduled, and progress the de-risking work. “This is not the time to tie up with anyone,” Silva said. “We want to keep our 80% stake for now,” he added when answering a separate question."
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