Galp CEO Felipe Silva said this on Monday Galp is firmly committed to keeping its 80% stake in the Namibian oil project intact, at least until drilling is completed on the next two wells in the Mopane complex.Which should only happen at the end of next year.
“Our project in Namibia is progressing faster and better than expected,” the CEO admitted, saying the estimated reserves of 10 billion barrels of oil equivalent for the region could be proven after drilling the next three wells scheduled for 2025.
According to the official, Dr The oil company is “currently” drilling the third well in the area – about 10 kilometers away from the two other wells already in place – an asset that “must be preserved.”He stressed that he hopes to be able to announce the results this year. As for the fourth well, it is scheduled to be drilled in the summer of 2025, while wells five and six will be in “locations that have not yet been determined and still depend on reservoir analysis.” CEO Felipe Silva said that these three other wells are expected to be drilled during the second half of next year.
The company will also carry out high-resolution seismic analysis work across the entire complex during the first quarter of 2025.
The CEO also said that in the same area there are several other oil and gas companies carrying out exploration work similar to that carried out by Galp, which means that in the coming months several drilling operations will be carried out simultaneously at the site, which will lead to information New.
“We remain very committed to maintaining our 80% position in Namibia, at least until we get results from the next two wells. And as you know, there are a number of other wells that will be explored in the country by other companies in the vicinity,” he said at the opening of the call with analysts. After Galp reported profits of $890 million through September, “we will have very valuable information in the coming months.
Regarding the intention, expressed and reaffirmed, to find a partner for oil exploration in Namibia, Galeb reiterated that he has the “financial capacity to avoid rushing into possible negotiations.”
“The plan is to continue with the current 80% and reduce risk as much as possible with what we have. We have already conducted a series of negotiations With potential partners, there is a shortlist of highly credible players interested in Namibia. When would be the right time to form a partnership? This is clear to us It will not be until we at least complete the drilling of the next two wells. Therefore, We will probably wait until the end of 2025. This is also to see what other companies around us will discover. “Some of the people we are talking to for our project are also exploring in the area,” the CEO told analysts.
“We are doing preliminary work on project studies, so, “When we have a partnership, we can start working right away.”
Regarding investment in the project, GALP estimates the costs of drilling each well in Mopani at $75 million, and this value will tend to decrease from now on. “In Namibia, the investment and our costs per well are coming down,” he explained. “We know the place better, there is much more competition between providers and we have more knowledge of the geology, so the cost of investment is coming down very quickly.”
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