Galp Energia’s strategy was designed to take advantage of the current and future of the Oil & Gas industry dynamics, namely the expected increase in oil and natural gas demand worldwide, and to shift the strategic focus away from markets with higher economic slowdown, as is the case in Europe, particularly in the Iberian Peninsula.
The ultimate goal of the Company is to create value for its shareholders in a sustainable manner, mainly through its Exploration & Production business, and its exploration activities in particular.
This strategic focus will be reflected on the delivery of profitable business growth in Exploration & Production, which will, in turn, be supported by the cash flow generated from the business in the Iberian Peninsula as well as the Company’s oil and natural gas production activities. Active management of the portfolio, through the potential monetisation of certain Company assets, will also support entry into new areas of exploration.
In turn, one of Galp Energia’s strategic objectives is to hold a balanced portfolio of exploration projects, which after being de-risked, ensure a sustainable production level in the long term.
Additionally, during the development and production stages, the Company aims to maximise the value of its projects, striving to increase the recovery factor of resources, optimise investment, bring forward the marketing of resources and reduce execution risk.
The Company, therefore, aims to become an integrated operator, recognised for its exploration successes.
Galp Energia’s strategy relies on six fundamentals:
- Benefit from its competitive advantages
- Create sustainable value by focusing on exploration
- Develop world-class projects
- Develop resilient and profitable Iberian businesses
- Ensuring a sound capital structure
- Ensuring consistent delivery of shareholder value through responsible practices