• Galp will focus growth on upstream oil assets in Brazil and Namibia while separating downstream operations.
• The group may list part of its downstream business after an industrial split with Moeve, subject to valuations and regulation.
• Galp expects Brazil output to rise about 10% in 2026 and views Namibia’s Orange Basin assets as strategic.

Portugal’s energy group Galp will concentrate its growth strategy on oil exploration and production in Namibia and Brazil. Co-Chief Executive Officer João Diogo Marques da Silva confirmed the orientation on Tuesday, January 20. He said the upstream segment will remain outside the ongoing industrial reorganization.

At the same time, the Portuguese group did not rule out a potential medium-term stock market listing of part of its downstream activities resulting from the restructuring.

Industrial Split and Downstream Reorganization

In early January, Galp said it was in talks with Moeve, a company backed by private equity funds, to combine their refining and distribution operations into two new entities. One entity would focus on fuel distribution. The other would focus on refining.

If completed, the transaction would create one of Europe’s largest refining groups, with combined processing capacity of about 700,000 barrels per day.

Under the proposed structure, Galp would retain about 20% of the new entities alongside Moeve, Abu Dhabi sovereign fund Mubadala, and U.S. investment firm Carlyle. The parties have not signed a binding agreement. Management said a final decision could come by mid-2026, once valuations become clearer.

Galp said it would only consider a potential initial public offering after asset consolidation, regulatory clarification—particularly in distribution—and completion of industrial investments.

This strategic refocus aims to preserve and enhance an upstream portfolio that Galp views as a long-term growth lever. After Galp announced talks with Moeve, some observers raised the prospect of upstream asset sales. Management rejected that scenario and emphasized the strength and potential of its exploration and production positions.

In Brazil, Galp recently started production at the large Bacalhau field. The group expects oil output in the country to increase by about 10% in 2026, reinforcing the asset’s central role in its growth trajectory.

In Namibia, Galp holds stakes in offshore blocks in the Orange Basin, where recent discoveries have attracted heightened global industry interest. These undeveloped assets remain under close review and form a strategic pillar of the group’s upstream ambitions.

Beyond these two core markets, Galp is maintaining a selective international expansion strategy. The group said it continues to monitor potential opportunities in Angola. It also continues exploration activities in São Tomé and Príncipe, which it considers longer-term growth options.

At the same time, Galp has executed targeted exits, notably in Mozambique and Guinea-Bissau, reflecting a broader effort to optimize its asset portfolio.

This strategy unfolds against a backdrop of a slower-than-expected energy transition. Galp said Europe will continue to rely on hydrocarbons for several more years. The group therefore justified maintaining targeted upstream investments alongside a rationalization of downstream operations.

Over the medium term, the success of the industrial split, the evolution of the partnership with Moeve, and the ramp-up of Brazilian and Namibian assets will determine Galp’s ability to create value.

Olivier de Souza