Galp co-CEO Carioca says upstream continues to be growth driver

Galp co-CEO Carioca says upstream continues to be growth driver

Galp Co-CEO Carioca Affirms Upstream as Core Growth Driver Amid Strategic Shifts

Galp Energy’s co-CEO, Carioca, emphasized that the upstream segment remains a critical pillar of the company’s growth strategy, aligning with its broader focus on decarbonization and energy transition. The company’s upstream portfolio, characterized by low production costs and below-sector carbon intensity, is positioned to deliver a 25% increase in production capacity by 2025 through already sanctioned projects. This includes key developments in Brazil’s pre-salt region, such as the Bacalhau project, which is expected to contribute 40,000 barrels of oil equivalent per day by 2027.

Galp’s strategic reallocation of capital underscores its commitment to upstream growth. Approximately 65% of planned 2025–2026 investments are directed toward upstream and transformation projects, with 35% allocated to low-carbon initiatives. The company’s upgraded 2025 production guidance of 105,000–110,000 boe/d reflects confidence in its upstream capabilities, supported by disciplined capital management and cost efficiency.

The decision to spin off its refining business, announced in 2024, further enables Galp to concentrate on upstream expansion and renewable energy ventures. This shift aligns with its goal to allocate over 70% of net investments to low- or zero-carbon opportunities by 2025, accelerating its transition to a green energy hub.

Financial performance reinforces this strategy. In Q2 2025, Galp reported a 25% year-on-year increase in adjusted net profit, driven by higher hydrocarbon production and natural gas trading volumes. The company also raised its 2025 EBITDA guidance to over €2.7 billion, reflecting robust upstream contributions and improved refining margins.

While upstream remains central, Galp continues to diversify into renewables, targeting 12 GW of renewable capacity by 2030 and advancing green hydrogen projects, including a planned 1 GW electrolysis capacity by 2025. This dual focus on traditional and emerging energy sources positions Galp to navigate the evolving market while maintaining financial discipline and shareholder returns.

(https://www.galp.com/corp/en/about-us/galp/strategy): Galp Strategy, Galp Energia
(https://pestel-analysis.com/blogs/growth-strategy/galp): Galp Energia’s Growth Strategy and Future Prospects, PESTEL Analysis
(https://www.reuters.com/sustainability/sustainable-finance-reporting/with-refining-spin-off-galp-focuses-growing-upstream-brazil-namibia-2026-01-20/): With refining spin-off, Galp focuses on growing upstream in Brazil, Namibia, Reuters