Galp Energia Raises Forecasts, Advances Plans to Farm Down Namibian Oil Stake

Portuguese energy company Galp Energia has increased its full-year earnings guidance after reporting stronger-than-expected second-quarter results, and confirmed that it is seeking a partner to develop its offshore oil discovery in Namibia.

The company now expects its adjusted EBITDA for 2025 to exceed €2.7 billion, up from a previous forecast of around €2.5 billion. This revision follows improved performance in its gas trading division, which was driven by liquefied natural gas (LNG) deliveries from the Calcasieu Pass terminal operated by Venture Global LNG in the United States, according to a report by Reuters on July 21, 2025.

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In the second quarter, Galp posted an adjusted EBITDA of €840 million, surpassing its earlier guidance of €724 million. Net profit rose by 25% year-on-year to €373 million, due in part to a lower effective tax rate and stronger upstream production. These gains offset a weaker quarter for refining, where margins and crude prices declined.

In parallel with its financial update, Galp reaffirmed its commitment to reducing its stake in the Mopane oil discovery located in Namibia’s Orange Basin. The company currently holds an 80% operating interest and is aiming to farm down up to 50%, while transferring operatorship to a new strategic partner. Galp said the move would allow it to manage capital exposure while accelerating appraisal and development activities.

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The Mopane-3X well, drilled earlier in 2025, encountered light oil and gas condensate in high-quality sandstone reservoirs, confirming the hydrocarbon potential of the field. The well targeted the AVO-10 and AVO-13 prospects and reached additional deeper sand layers, according to reporting from Offshore Energy in February 2025. The company has drilled five wells in the area so far, estimating a total resource potential of up to 10 billion barrels of oil equivalent (boe).

Galp’s progress in Namibia has been closely watched by international investors, with the region emerging as a significant offshore oil frontier. The company said it is continuing further tests and assessments to evaluate commercial development options. According to Reuters, the recent drilling results led to a rise in Galp’s share price and renewed interest from potential partners.

As Galp works to diversify its portfolio and strengthen its upstream assets, its combination of robust LNG trading, upstream growth, and plans for strategic partnerships in Namibia are expected to shape its medium-term investment profile.

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