Strategy

We work to ensure that Galp’s businesses are sustainable, with our strategy aimed at ensuring the resilience and agility of the organisation and preparing it for a complex and dynamic world.

Galp’s strategy involves the development of a competitive and diversified upstream portfolio, integrated with an efficient and competitive downstream business, constantly adapting to the needs of our clients and based on innovative and differentiating solutions to help support the gradual transition to a low carbon economy.

This strategy is based on factors such as:

• Solid financial capacity
• A client-centered culture
• More agile, innovative and technology-based partnerships

We will continue to develop our people, while building a more agile, innovative and technologically advanced corporate environment, that meets the challenges and dynamics of the energy sector during a period of significant uncertainty and complexity.

Galp believes that ensuring the protection of people, the environment and assets, as well as the communities it operates in, and adopting an ethical conduct are indispensable for its actions and strategic execution.

In upstream, Galp is focused on ensuring the competitiveness of its E&P portfolio.

The strategy is based on developing our current portfolio, extracting more value from it and identifying new opportunities in geographies where Galp has a competitive advantage or strategic angle.

This will ensure the competitiveness of our future production and a balanced exposure to gas.

In the oil value chain, Galp will focus on increasing the efficiency and conversion of its refining system. Additionally, it will proceed with the optimisation of its oil products distribution network in Iberia, whilst developing its African clusters by expanding the respective hinterlands.

Galp also intends to grow as a gas supplier and is developing new gas outlets, taking advantage of existing opportunities in the global energy markets.

We are also focused on adapting to evolving consumption patterns in an open, digital and sharing economy. In a world where consumer needs are constantly progressing, new solutions need to be able to adapt to continuously changing market dynamics.

Galp aims to play an active role in adapting its portfolio to future needs, creating synergies with existing activities whenever possible, diversifying its assets and progressively reducing its carbon intensity. We recognise that new and innovative solutions will foster structural changes to energy consumption, which will become gradually more sustainable, at an economic, environmental and social level. Therefore, we have tested our strategy against a scenario of rapid change in the world energy mix, compatible with the global ambition to mitigate the increase in greenhouse gas emissions.

Despite keeping oil and natural gas at the heart of our strategy, we will develop new solutions and explore business opportunities supported by low-carbon energy sources, where we expect to allocate 5-15% of our capital. Electrification is one of the key trends in the energy sector, and we intend to support our power retail offer with the supply of renewable energy. Among several options, we highlight solar, which has proven an increasingly competitive and flexible solution for both clients and energy companies.

The ongoing digital transformation has created the conditions for innovative products and services to replace previous alternatives with clear benefits for society. Solutions in the field of mobility, decentralised energy generation or the smart management of buildings and cities have influenced the energy sector, enabling significant gains in energy efficiency and more options for consumers.

Galp wants to identify, at any given time, the best solution available for its customers. It will therefore continue to transition into a client-centric organisation with the skills to anticipate and meet their needs.

New technologies have also enabled significant gains, through the introduction of new processes and the automation of industrial activities. Artificial Intelligence solutions have allowed us to improve seismic interpretation in oil and gas exploration, speeding up the creation of enhanced geological models, the risk assessment of new prospects, and the optimal placement of new wells. At our refineries, we have been implementing an extensive automation and digitalisation programme, improving our overall performance and competitiveness.

We will continue to invest in innovation, research and technological development, which are crucial for the continuous extraction of value from our assets and the creation of new business models, romoting the sustainability of the Company and the communities in which it operates.