Galp Energia is considering investing another N$13 billion in Namibia in the coming years as it continues exploration and appraisal work on the Mopane discovery with TotalEnergies. The companies are targeting a potential final investment decision (FID) in 2028.
This would add to the N$12 billion Galp has already invested in Namibia over the past 20 years. If the company proceeds with the additional investment, its total investment could reach about N$25 billion before development and first oil.
Galp Upstream Senior Vice President Adriano Bastos said the additional funding would support further exploration and appraisal work to reduce the technical and commercial risks linked to the discoveries.
Bastos said Galp had already invested around N$12 billion and could spend another N$13 billion over the next few years before the company even begins development and production. He noted that the project still carries significant technical and financial risks.
Galp holds interests in Petroleum Exploration Licence 83 (PEL 83), where it discovered Mopane after drilling five wells.
Bastos said PEL 83 covers more than the existing Mopane discoveries and contains other exploration targets that the companies still need to test.
TotalEnergies will take over as operator of PEL 83, with the partners planning to drill three additional wells from November 2026.
Bastos said the new drilling campaign will help the companies better understand the size of the resources and assess the potential development options for Mopane.
The companies need more drilling data before deciding how to develop the discovery. The next well will help confirm additional volumes, after which the partners can determine the most suitable development strategy. Bastos said there is still significant work to complete before reaching FID, but the partners are aiming for 2028.
Bastos also stressed the importance of a stable regulatory and investment environment because offshore oil projects require large investments and can operate for decades.
He said investors need confidence in Namibia’s long-term plans because developing a project of this scale could create a business relationship lasting at least 30 years.
Bastos also identified local content as an important part of Namibia’s potential oil and gas development. He said the country should use the growth of the sector to build local businesses, skills, and industrial capacity.
Using Brazil as an example, he said Namibia could increase local participation in the industry by developing domestic capabilities that also make commercial sense for companies operating in the country.
source:miningandenergy.com.na
African Energy Council