TotalEnergies strengthened its role in offshore Namibia by reaching an asset-swap deal with Portugal’s Galp, giving the French company operatorship of the significant Mopane discovery.
Galp will transfer a 40% stake in the PEL83 license, where Mopane is located. In return, it will receive a 10% share in TotalEnergies’ PEL56 license, which includes the Venus discovery, along with a 9.4% share in the PEL91 license. All three blocks sit next to one another.
TotalEnergies will cover half of Galp’s exploration and appraisal costs for Mopane, with Galp expected to repay these expenses later from future project revenue. QatarEnergy remains the second-largest partner in PEL56 and PEL91.
Shares of TotalEnergies edged up 0.6%, while Galp’s stock fell more than 11%.
Analysts at RBC said the deal appears to favor TotalEnergies more than Galp. They noted that the lack of upfront payment may concern investors and that Galp taking on full repayment of exploration and appraisal spending could also be seen as a drawback.
They added that including the Venus asset in the agreement may help align both companies’ interests, although it also means Galp will face slightly higher capital spending over the coming years.
TotalEnergies and Galp plan to drill three wells at Mopane over a two-year period starting in 2026.
Last month TotalEnergies and Chevron had been leading contenders for a stake in Mopane.
TotalEnergies said the agreement positions it as the operator of Namibia’s two largest oil discoveries and sets up the potential development of a major production hub.
The companies expect to complete the transaction in 2026.
Galp Chair Paula Amorim said the partnership with TotalEnergies will help lower the project’s risks and provide a clearer path for Mopane’s future.
source: www.reuters.com
African Energy Council