Galp Output, Gas Sales Up in 1Q

In a trading update ahead of its results on May 2, Portugal’s Galp Energia said April 18 its worldwide 1Q2017 upstream production grew by over half while its gas sales were almost 8% higher.

Average working interest production increased year on year by 56.1% to 88,000 barrels of oil equivalent per day in 1Q2017, of which 11,100 boe/d gas.

Net entitlement production increased by 60.5% to 86,200 boe/d, of which 79,300 boe/d in Brazil (up by 73.1%) and 6,900 b/d oil in Angola (down by 12.9%). In all cases though, Galp’s production was slightly higher than in 4Q2016.

Gas and LNG sales volumes increased year on year by 7.9% to 2bn m³ in 1Q2017. That included sales to direct clients up 27.6% at 1.15bn m³ – helped by a steady increase in demand from power generators in Portugal and Spain -- although traded volumes were 10.7% lower at 857mn m³.

Galp has upstream interests in major new oil fields offshore Brazil and gas interests offshore Mozambique, but its Angola interests are more mature. A final investment decision on an debut LNG project in Mozambique, led by Eni, is still pending.

Mark Smedley