TotalEnergies has announced a partnership deal with Galp to develop the Mopane oil field off the coast of Namibia. The French energy company will join Galp as an operator, with exploration efforts ongoing to assess the field’s potential for production. TotalEnergies will acquire a 40% stake in the petroleum exploration licence, with Galp retaining a 40% stake, and the Namibian national oil company Namcor and private firm Custos each holding 10% stakes.
The deal involves TotalEnergies financing half of Galp’s capital expenditures for exploration, appraisal, and initial development of the Mopane field, with repayment to come from future cash flows. In return, Galp will receive a 10% stake in the nearby Venus exploration zone, where TotalEnergies has discovered oil. TotalEnergies plans to make a final investment decision on developing production at Venus next year.
The Mopane field is estimated to contain at least 10 billion barrels of oil, according to Galp’s estimates last year. The partnership positions TotalEnergies as the operator of the two largest oil discoveries in Namibia, paving the way for the development of a major producing hub. This move is expected to generate long-term value for the country and partners involved.
The deal has been welcomed by investors, with TotalEnergies’ shares rising 0.4% in afternoon trading on the Paris stock exchange. The development of the Mopane field is a significant step forward for Namibia’s oil industry, with the potential to boost the country’s economy and energy production. As exploration efforts continue, the project is likely to attract further investment and attention from the international energy sector.
The partnership between TotalEnergies and Galp marks a significant milestone in the development of Namibia’s offshore oil fields. With TotalEnergies’ expertise and financial backing, the project is well-positioned to move forward, with potential benefits for all parties involved. As the energy sector continues to evolve, deals like this highlight the importance of international cooperation and investment in developing new energy resources.
