Portuguese energy multinational Galp, which recently concluded the divestment of Area 4, in the Rovuma basin, Cabo Delgado province, northern Mozambique, says the decision is part of its strategy to focus on high-return, low-cost and low-carbon projects.

According to Galp's CEO, Filipe Silva, who told Energy Connects, an information platform on the energy sector, the importance of the multinational's decisions contributed to the 16% increase in net profit in the 2nd quarter of 2024 amid higher oil prices and lower production costs.

"These actions allow us to crystallize value, reduce risk and focus on higher return projects aligned with Galp's strategy. Continue to reduce risk and grow our upstream from low-cost, low-carbon intensity projects, while transforming our integrated midstream and downstream positions," said Filipe Silva, quoted by the Portuguese newspaper AIM.

Galp also concluded the sale of its upstream assets in Angola, a move also in line with Galp's strategy of focusing on high return projects.

As a result of strategic decisions, the Portuguese energy multinational announced a 16% year-on-year increase in net profit for the second quarter of 2024, driven by higher oil prices and lower production costs.

It should be noted that Galp has announced an agreement to sell its position in gas exploration projects in Mozambique. These assets include the Coral South liquefied natural gas field which has been in operation since 2022, as well as the Coral North and Rovuma LNG projects which should receive the green light to go into production in the next two years.

Galp's 10% stake in Mozambique's Area 4 projects was sold to ADNOC, Abu Dhabi's national oil company.

In Mozambique, Galp maintains its presence in downstream activities, namely in the area of fuel distribution.

(Photo DR)