What's Happening?
TotalEnergies has entered into an agreement with Galp Energia to acquire operatorship of the Mopane oil discovery offshore Namibia. This transaction, announced on December 9, 2025, involves TotalEnergies obtaining a 40% operated interest in petroleum exploration license (PEL) 83, which includes the Mopane discovery. In return, Galp will receive a 10% participating interest in PEL 56, home to TotalEnergies' Venus discovery, and a 9.39% interest in PEL 91. This deal 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. TotalEnergies will also carry 50% of Galp's capital expenditures for exploration and initial
development at Mopane, to be repaid through future cash flows. The companies plan to launch a new exploration campaign at Mopane, including three wells over the next two years.
Why It's Important?
This agreement significantly enhances TotalEnergies' presence in Namibia, a region that has become a global exploration hotspot due to recent major discoveries. By securing operatorship of both the Mopane and Venus discoveries, TotalEnergies is poised to capitalize on long-term deepwater growth opportunities. The deal also reflects the strategic importance of the Orange Basin, attracting international oil companies seeking to expand their deepwater portfolios. The transaction is expected to bolster Namibia's position in the global oil market, potentially leading to increased investment and economic development in the region. For TotalEnergies, this move aligns with its broader strategy to strengthen its upstream operations and secure future production capabilities.
What's Next?
The transaction is subject to customary approvals from Namibian authorities and joint venture partners, with completion anticipated in 2026. TotalEnergies and Galp plan to commence a new exploration and appraisal campaign at Mopane, with the first well scheduled for drilling in 2026. This campaign aims to further de-risk resources and advance development planning. Additionally, TotalEnergies is working towards securing conditions for a potential final investment decision on the Venus discovery in 2026. The successful completion of these initiatives could lead to the establishment of a significant offshore production hub in Namibia, enhancing the country's role in the global energy landscape.
