MILAN (Reuters) – Saipem is about to start work on deep water drilling in Namibia for Portugal’s Galp Energia, the chief executive of the Italian energy contractor said on Thursday.
In early 2024 Galp carried out tests at its Mopane-1X and Mopane-2X wells and estimated in April that the Mopane field could hold at least 10 billion barrels of oil following a first phase of exploration.
The find at Mopane appears to be one of the largest made in the Orange Basin following successful exploration projects by TotalEnergies and Shell in recent years.
The contract awarded by Galp to drill a deep-water well is the first in Namibia for the Italian group, which already serves energy groups in neighbouring Angola.
“For the first time we will work offshore Namibia… we will be serving Galp, which wants to do exploration works, by using our drilling ship Santorini,” Saipem CEO Alessandro Puliti said.
The project is expected to start in a few days and last around three months, Puliti added, speaking at a press briefing after the release of third-quarter results.
Saipem will present an updated business plan next February, he said, sounding upbeat on the prospects for the energy services market.
Late on Wednesday the Italian group reported adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of 340 million euros ($367.17 million) between July and September, above an analyst consensus of 323 million euros compiled by LSEG.
On the back of this performance, Saipem revised up its 2024 guidance and confirmed its intentions to resume dividend payments next year after a four-year halt.
Shares in Saipem were up nearly 5% in early afternoon trading in Milan, lifted by the improvement of its full-year guidance.
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(Reporting by Francesca Landini; Editing by Susan Fenton)
