Portuguese energy giant Galp is reportedly in final-stage negotiations with oil supermajors TotalEnergies and Chevron to offload up to 40% of its stake in the Mopane project, one of Africa’s most significant oil discoveries in over a decade. Located off Namibia’s coast in the Orange Basin, the Mopane field is estimated to contain up to 10 billion barrels of oil equivalent, with production expected to commence between 2031 and 2032.
Industry insiders have revealed that Galp has shortlisted several candidates and plans to announce a final decision by the end of 2025. The company initiated the partner search earlier this year to reduce risk exposure and share the substantial development costs associated with the deepwater project.
However, the process has progressed slower than anticipated due to investor caution. Agence Ecofin highlighted several concerns in July, including an unconfirmed economic model, high gas content that is challenging to monetize, steep deepwater development costs, and regulatory uncertainties surrounding operational control and Namibia’s local content requirements.
Galp confirmed the presence of a large oil system at Mopane in May 2024, following major discoveries by TotalEnergies and Shell in 2022 and 2023. The National Petroleum Corporation of Namibia stated last year that progress on these offshore projects could enable oil production within the next decade, marking a transformative moment for the country’s emerging energy sector.
Source: neweralive.na