What's Happening?
TotalEnergies has entered into an agreement with Galp Energia to acquire a 40% operated interest in the Mopane oil discovery offshore Namibia. This transaction positions TotalEnergies as the operator of Namibia's two largest offshore oil discoveries,
Mopane and Venus, and supports plans to develop a major offshore production hub in the Orange Basin. The deal involves TotalEnergies carrying 50% of Galp's capital expenditures for exploration and initial development at Mopane, with repayment through future cash flows. The transaction is subject to customary approvals and is expected to be completed in 2026.
Why It's Important?
This development is significant as it strengthens TotalEnergies' position in one of the world's most active deepwater exploration frontiers. The acquisition aligns with the company's strategy to expand its footprint in Namibia's offshore oil sector, which has seen increased interest from international oil companies. The move could potentially boost Namibia's economy by enhancing its oil production capabilities and attracting further investment in the region. Additionally, the deal highlights the ongoing global interest in deepwater oil exploration despite environmental concerns.
What's Next?
TotalEnergies and Galp plan to launch a new exploration and appraisal campaign at Mopane, including drilling three wells over the next two years. The first well is scheduled for 2026, aiming to further de-risk resources and advance development planning. The completion of the transaction is contingent upon approvals from Namibian authorities and joint venture partners. The outcome of these developments could influence future investment decisions and the pace of oil production in Namibia.
