By Business Reporter
GALP, which was awarded two new offshore blocks, has formalised final joint venture agreements with its local partners, and has also set up a permanent office in Namibia, paving the way for a new exploration campaign, which is due to start at the end of the year.
The licences, Petroleum Mining Lease (PEL) 82 and PEL 83, cover a total area of around 20 000km2 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 local 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 geophysics studies and the acquisition of new 3D seismic surveys (2 500km2 in each area), 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 percent stake in three blocks operated by HRT – PELs 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 percent of the consortium, and taking on the role of operator. NAMCOR and Custos have both taken a 10 percent stake each in the consortium.
The three partners recently signed two joint operating agreements (JOA) that govern how they will work together during the project, and allows 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.
Galp is an integrated energy company that develops profitable and sustainable businesses, by aiming to create value for all its stakeholders.
Employing 6 500 people globally, with a market capitalisation of around N$170 billion, Galp has been present in Africa since the middle of last century. Current African operations include activities in Angola, Mozambique, Swaziland,Guinea-Bissau, and São Tomé and Príncipe, which encompass oil and gas exploration and production, and the downstream distribution of oil products to end-users.
In addition, elsewhere around the world, Galp is one of the biggest oil producers in Brazil, where it has important positions in offshore pre-salt fields in the Santos Basin, which rank among the world’s most prolific. Galp is also present in the giant gas discoveries of the Rovuma Basin in Mozambique.
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