With the spin-off of its refining business, the Portuguese energycompany Galp is redefining its strategy by focusing on oil exploration and production in Brazil and Namibia. This decision marks a shift in its operating model, focusing on assets with high potential in South American and African deep waters.
Galp’s strategic reorganization and alliance with Moeve
As part of its corporate transformation, Galp is negotiating with Moeve, a firm backed by Mubadala and Carlyle, a merger that will give rise to two new entities focused on downstream activities. One of them will group the network of more than 3,500 service stations, mainly in the Iberian Peninsula, while the other will focus on the industrial refining business, positioning itself among the largest energy platforms on the continent.
According to Joao Diogo Marques da Silva, co-CEO of Galp, the agreement with Moeve will allow the company to free up resources and align its portfolio towards more profitable businesses. Although the operation is not yet binding, a definitive closing is expected in 2026, when an eventual IPO of the new units could also be evaluated.
While the spin-off process progresses, Galp strengthens its presence in the upstream segment, with investments aimed at growing its production in Brazil, where it projects a 10% increase in 2026. It also maintains a strong commitment to its offshore assets in Namibia, a region that is gaining prominence on the global oil map.
The upstream assets will not be part of the merger with Moeve. Galp has made it clear that this segment constitutes its strategic core, with a solid resource base that allows it to generate sustained value over time. The company also does not rule out a return to Angola if favorable conditions arise.
The refocus on regions such as Brazil and Namibia responds to a strategy of geographic diversification and portfolio optimization. Galp seeks to consolidate its position as a key player in the development of new offshore fields, taking advantage of its technical expertise and financial capacity.
In parallel, the energy company is working on clarifying regulatory aspects related to the retail business and completing the necessary investments in the refining area before considering a public listing.
Source and photo: Galp