Portugal´s Galp to sell Angola oil assets while focusing on Brazil and Mozambique


Portugal´s energy group Galp is assessing the possibility of selling its oil extraction operations in Angola, while it proceeds with investments in Brazil and Mozambique.

Bloomberg reported last week that the Portuguese oil company is working with a financial consultant to ascertain market interest in its assets in the Angolan market.

“It would be a positive move,” say Caixabank/BPI analysts, admitting that “the timing seems perfect” to make the Angolan assets profitable, given the high price of oil.

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“In our opinion, the sale of upstream assets in Angola would be a positive move. Angola is not a core asset in Galp’s upstream portfolio and the timing seems perfect to monetise those assets in the current context of high oil prices,” the investment bank said.

They said the revenue from a potential deal “could be earmarked for low-carbon projects and/or a special dividend or share buyback”.

Angola counts for about 10% of Galp’s total oil & gas production (2021 data), according to Caixabank/BPI.

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“In our valuation, Angola represents 6% of our target price or about EUR 700 million, mainly associated with Block 32 (Kaombo Project, 5% share). The remaining assets are Block 14 (9%) and 14 (4.5%), which are already in their natural state of decline,” they explain.

With a market valuation of about nine thousand million euros, Galp’s largest shareholder is Amorim Energia, with 33.34%. This company is owned by the Amorim family (55 percent) and by Angolan state oil company Sonangol (45 percent). Parpública holds 7.48% of the Portuguese oil company.


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