The share price of Portuguese group Galp Energia rose by a spectacular 18.77% on the Lisbon Stock Exchange, reaching 19.05 euros at the opening. This surge followed the announcement of a significant discovery offshore Namibia.
The potential of the Mopane deposit
Drilling in January and March in the Mopane field, in which Galp holds an 80% interest, revealed a potential of at least ten billion barrels of oil. “Namibia could become a new source of revenue for Galp, which currently holds major investments off the coast of Brazil and is also involved in a natural gas project in Mozambique’s Rovuma Basin,” it said in a statement.
Financial and strategic impacts for Galp
This discovery could significantly transform Galp’s financial and strategic structure. Already involved in projects in Brazil and Mozambique, the company is strengthening its global presence and diversifying its sources of revenue. For Namibia, this deposit represents an opportunity to become a substantial source of revenue, potentially accelerating its economic development and strengthening its position in the energy sector.
Impact on Galp’s earnings
In February, Galp announced that it would achieve a record profit of €1 billion in 2023, up 14% on the previous year. This new discovery could propel future profits even higher.
Galp Energia’s recent discovery offshore Namibia marks a potentially transformative period for the company and the region. It underlines the importance of diversification and innovation in the global energy sector.
