Portugal’s Galp has reached a farm-in agreement with KE STP Company, a Shell affiliate, for the acquisition of a 27.5% stake in São Tomé and Príncipe’s Block 4, forming a joint venture with Shell, Petrobras and ANP-STP.
With the agreement, Galp expands its presence offshore São Tomé and Príncipe, entering another early-stage exploration block through a limited financial commitment, solidifying its exploration position in a geography where Galp has been an exploration pioneer.
Shell is the operator of the Block 4, with 30% stake, along with Petrobras with 27.5%, ANP-STP with 15%, and now Galp with 27.5% working interests.
Galp currently holds interests in three offshore exploration blocks in the Muni River Basin, located in ultra-deep waters off Central Africa country, where it has been present since 2015.
Galp is the operator of Block 6, where it holds a 45% interest alongside Shell (45%) and the national oil company ANP-STP (10%).
In 2022, Galp drilled São Tomé’s first offshore exploration well, Jaca-1. While no commercially viable accumulations were discovered, Jaca-1 revealed the presence of an active petroleum system that was thoroughly sampled and studied.
In addition to Block 6, Galp also holds a 41,2% operating position in Block 12, in partnership with Equator and ANP-STP, and a 20%-stake in Block 11, operated by Shell, with Petrobras and ANP-STP as partners.
Over the years, Galp and its partners have carried out extensive seismic campaigns and geological studies across these blocks to evaluate the region’s hydrocarbon potential.
While exploration remains at an early stage, Galp’s entry in Block 4 demonstrates its long-term commitment towards the development of the country’s offshore resources, the company said.
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