Galp Considers Returning to Angola Oil Exploration
Portuguese energy giant Galp is eyeing a potential return to oil exploration and production in Angola, just two years after divesting its upstream assets in the country. The company’s leadership confirmed on Monday that they are actively analyzing local opportunities to bolster their South Atlantic operations.
“Comfortable with the Geography”
While no formal commitment has been made, Galp’s co-CEO João Diogo Marques da Silva told Lusa that the door is wide open. “The possibility of us returning to Angola exists,” he said, following the presentation of the company’s first-half financial results. “It is a country we know well; our exploration history began there many years ago, so we feel comfortable with the geography.”
Galp sold its Angolan exploration and production portfolio in 2024 but never fully left the market, maintaining a significant presence in fuel distribution and marketing. Marques da Silva emphasized that the company retains a strong rapport with local authorities and the state-owned oil firm, Sonangol.
Strategic Focus on the South Atlantic
The potential move aligns with Galp’s broader strategy to secure high-growth oil and gas assets. Co-CEO Maria João Carioca explained that the company is specifically focused on the South Atlantic Basin—a region where Galp holds deep expertise and long-standing historical ties.
“Angola is within that geographical perimeter,” Carioca stated, noting that any potential investment must align with Galp’s financial health and strategic priorities. She added that the company is also assessing opportunities in other Lusophone markets, including Cape Verde and São Tomé and Príncipe, to maintain a “diversified portfolio.”
Strong Financial Tailwinds
The interest in new exploration comes as Galp reports surging profits. The company announced a 44% jump in first-half earnings, reaching 812 million euros. This growth was fueled by robust production in Brazil and a rise in global Brent crude prices.
Boosted by these results, Galp has revised its 2026 earnings forecasts upward, targeting an EBITDA of 4 billion euros. The company also plans to increase its dividend by 10% to 0.70 euros per share.
Closing the Circle
Hints of a return were first dropped by Sonangol Chairman Sebastião Gaspar Martins, who recently suggested at a business conference that Galp was looking to re-enter Angola’s upstream sector. The relationship between the two entities remains deeply intertwined; Sonangol is an indirect shareholder in Galp through its stake in Amorim Energia, Galp’s largest shareholder.
Image: Pexels – Jan-Rune Smenes Reite
