Partners in a consortium comprising three giants – the U.K.’s Shell, Brazil’s Petrobras, and Portugal’s Galp – are joining forces on a block located off the coast of São Tomé and Príncipe, Africa.
The partners will collaborate on what Galp describes as an early-stage exploration block, Block 4 . Owning a 30% interest, Shell will be the asset’s operator with Galp and Petrobras holding 27.5% each. The remaining 15% belongs to Agência Nacional do Petroléo de São Tomé e Principé (ANP-STP).
Galp disclosed having reached a farm-in agreement with Shell’s affiliate KE STP Company B.V., as a limited financial commitment for its 27.5% stake in the block. The Portuguese company is also the operator of two blocks in the country, Block 6 (45%) and Block 12 (41.2%), and holds a 20% interest in Block 11.
Galp is also active further down south in Africa, more specifically, in Namibia. Several months ago, light oil and gas condensate were discovered in the fifth well within the second exploration and appraisal program in the Orange Basin.
In a separate announcement, Petrobras said that this transaction will diversify its portfolio and boost its African exploration operations. After years of absence , the Brazilian major returned to São Tomé and Príncipe in February 2024 , when it acquired a 45% stake in Blocks 10 and 13, and a 25% stake in Block 11, all operated by Shell.
The major sees exploration of new frontiers and partnership operations as a way to replenish oil and gas reserves. Therefore, the deal is said to be aligned with its long-term strategy and the 2025-2029 Strategic Plan .
Meanwhile, the operator of the new blocks, Shell, has been quite busy this month. In addition to securing a liquefied natural gas (LNG) supply deal with Italy’s Edison, the U.K. giant appointed Neil McCulloch as Chief Executive Officer (CEO) for Adura , its joint venture with Equinor.