TotalEnergies has signed a landmark agreement with Galp Energia to acquire operatorship of the Mopane oil discovery offshore Namibia, positioning the French major as operator of the country’s two largest offshore oil discoveries and expanding its footprint in one of the world’s most active deepwater exploration frontiers.
Under the transaction announced December 9, TotalEnergies will acquire a 40% operated interest in Petroleum Exploration Licence 83, which includes the Mopane discovery. In exchange, Galp will receive a 10% participating interest in PEL 56, home to TotalEnergies’ Venus discovery, along with a 9.39% interest in PEL 91. The agreement strengthens both companies’ positions in Namibia’s prolific Orange Basin while supporting plans to develop a major offshore production hub.
As part of the deal, TotalEnergies will carry 50% of Galp’s capital expenditures for exploration, appraisal, and the initial development phase at Mopane. The carry will be repaid through 50% of Galp’s future cash flows from the project. The two companies have committed to launching an exploration and appraisal campaign of at least three wells over the next two years to further de-risk the block and potentially unlock a development hub, with the first potential well under assessment for 2026.
Paula Amorim, Chairman of Galp, highlighted the strategic value of the partnership: “After Galp’s remarkable exploratory efforts in Namibia, leading PEL 83 with an 80% stake, we are happy to partner with TotalEnergies, a highly experienced ultra-deepwater operator, and significantly de-risk Mopane by aligning a concrete path forward for the asset. We expand our footprint in Namibia’s prolific Orange Basin, reinforcing our commitment to the development of the country’s oil and gas industry, whilst strengthening our upstream portfolio with high-potential projects, such as Venus, which will further support Galp’s continued growth profile.”
TotalEnergies is working on a development concept for Venus that includes a 160,000 barrels per day floating production, storage, and offloading unit, with a final investment decision estimated for 2026. The company said it remains fully committed to progressing the Venus discovery in PEL 56 and is working toward securing the conditions needed for the potential FID.
Following completion of the transaction, TotalEnergies will hold a 40% operated interest in PEL 83 alongside Galp at 40%, Namibia’s national oil company Namcor at 10%, and Custos Energy at 10%. In PEL 56, TotalEnergies will retain a 35.25% operated interest alongside QatarEnergy at 35.25%, Galp at 10%, Namcor at 10%, and Impact Oil & Gas at 9.5%. TotalEnergies will also hold a 33.085% operated interest in PEL 91.
Galp has conducted extensive appraisal work in Namibia, including several 3D seismic surveys and eight exploration and appraisal wells since 2012, when it started operating in the country. Five of those wells were conducted since December 2023, leading to the Mopane discovery. The transaction remains subject to government, regulatory, and joint venture partner approvals, which are expected during 2026.
Namibia’s offshore Orange Basin has emerged as a global exploration hotspot following a series of major discoveries over the past several years, drawing increased interest from international oil companies seeking long-term deepwater growth opportunities.
Sources: namibiaoilandgas.com, worldoil.com