Galp chooses Total as partner for oil exploration in Namibia
TotalEnergies was chosen by Galp as its partner for oil exploration in the Mopane complex in Namibia, in an agreement that provides for the exchange of stakes in the region.
TotalEnergies has been chosen by Galp as its partner for oil exploration in the Mopane complex in Namibia. The French company will hold a 40% stake and bear half of the investment costs for exploration. The agreement also provides for the exchange of stakes in other TotalEnergies discoveries in the region.
“Galp has chosen France’s TotalEnergies as its partner to jointly operate and develop the Mopane discovery through an asset swap in which Galp will cede half of its 80% stake in PEL [exploration licence] 83, where Mopane is located, in exchange for stakes in other TotalEnergies discoveries in the region, expanding its presence in the Orange offshore basin in Namibia,” Galp said in a statement.
In exchange, Galp will receive a 10% stake in licence 56, where the Venus discovery is located, and a 9.4% stake in licence 91, both operated by TotalEnergies.
The French oil company will assume half of Galp’s exploration, evaluation and development costs in Mopane, which will later be paid to TotalEnergies with 50% of the future cash flows generated by the project.
‘We are delighted to establish a partnership with TotalEnergies, a highly experienced operator in ultra-deep waters, and to significantly reduce the risks of Mopane, aligning a concrete path for the future of the asset.’
“Following Galp’s remarkable exploration efforts in Namibia, leading PEL 83 with an 80% stake, we are delighted to establish a partnership with TotalEnergies, a highly experienced operator in ultra-deep waters, and significantly reduce the risks of Mopane, aligning a concrete path for the future of the asset,” said Paula Amorim, chair of Galp’s board of directors, quoted in a statement.
‘We have expanded our presence in Namibia’s prolific Orange Basin, reinforcing our commitment to the development of the country’s oil and gas industry, while strengthening our upstream portfolio with high-potential projects such as Venus, which will further support Galp’s continued growth profile,’ adds Galp’s chairwoman.
Galp shares reacted sharply to the announcement of the agreement, falling 15% in Tuesday’s session. TotalEnergies shares remain unchanged at €56.33.
The French oil company has also reacted to the deal, considering that the agreement positions it as the operator of the two largest oil discoveries in Namibia and paves the way for the development of an important production hub.
‘This is a strong recognition of the expertise of TotalEnergies’ teams in exploration and deepwater operations. This transaction also demonstrates TotalEnergies’ strong confidence in Namibia as a future oil-producing country,’ said Patrick Pouyanné, chairman and CEO of TotalEnergies, also in a statement.