Galp Bets on Africa and Brazil as Oil Demand Defies Energy Transition

October 21, 2025

Portugal’s largest energy company, Galp Energia, is ramping up exploration across Africa and Latin America as global oil demand remains resilient and the energy transition proves slower than anticipated.

“The world has changed,” said Executive Board Member Nuno Bastos on Tuesday, noting that the war in Ukraine and renewed energy security concerns have altered global priorities. “The energy transition is happening, but it will take more time than we thought. Europe still needs fossil fuels.”

Galp Bets on Africa and Brazil as Oil Demand Defies Energy Transition in its Mopane field offshore Namibia, where it currently holds an 80% interest. Mopane’s reserves are estimated at 10 billion barrels, and Galp aims to bring in a partner “to accelerate development as fast as possible,” Bastos said, with a deal expected by year-end. The company plans to move from discovery to production by the early 2030s.

The move builds on Galp’s broader African strategy. It also holds licenses in São Tomé and Príncipe, where it partners with Shell and Petrobras, and is evaluating additional exploration acreage across the continent.

Meanwhile, Galp is expanding its footprint in Brazil, having just secured three offshore blocks in the Pelotas Basin through Brazil’s fifth Open Permanent Concession bid round. The consortium includes Petrobras as operator (70%) and Galp with 30%, with a total signature bonus of about $2 million.

Galp’s largest project to date, the Bacalhau field in Brazil, began production this year. With a 20% stake, Galp expects Bacalhau to increase its output by 40% and generate roughly $400 million in annual free cash flow.

Bastos said Galp’s diversified upstream base—Bacalhau producing, Namibia appraising, São Tomé offering long-term potential—forms a “balanced portfolio” to sustain growth. Upstream projects accounted for 63% of Galp’s earnings last year, and profits from oil and gas will help fund the company’s transition into renewables, hydrogen, and biofuels.

“We’re not addicted to oil,” Bastos said. “We’re experts in developing complex energy projects—and we’ll keep doing that while investing in the next generation of energy.”

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