French energy giant TotalEnergies SE has emerged as the frontrunner to acquire a major stake in one of Africa’s largest oil discoveries, sources close to the negotiations reveal. The company is now leading the race to purchase 40% of Galp Energia’s Mopane field offshore Namibia, a move that could reshape the region’s energy landscape.
The deal structure is expected to include approximately €200 million in upfront cash, with the buyer assuming roughly €3 billion in project costs on Galp’s behalf, according to analysts at UBS Group AG. TotalEnergies has pulled ahead of several rival oil majors, including Chevron Corp. and Shell Plc, who have been vying for the prized asset.
The Mopane complex, located in Namibia’s Orange basin, could contain as much as 10 billion barrels of oil equivalent, placing it among the largest oil finds globally in the past decade. Galp has confirmed it expects to finalize a partner agreement before year-end from a shortlist of candidates, though both companies declined to provide further details on the ongoing negotiations.
For TotalEnergies, securing the Mopane stake and operatorship would significantly deepen its presence in Namibia’s emerging exploration hotspot. The company is already navigating development terms with the government for its nearby Venus discovery, a technically challenging project requiring an estimated $11 billion investment to build a 150,000-barrel-a-day floating production vessel and subsea wells.
The Portuguese energy company Galp plans to divest half of its 80% holding in Mopane, with the buyer taking over as operator of the project. Galp also maintains upstream operations in Brazil and São Tomé and Príncipe off Africa’s west coast.
Source: worldoil.com