TotalEnergies assumed operation of PEL 83, the license that hosts the Mopane discovery, after the agreed stake swap was completed with Galp and Namibia the transaction also allows the Portuguese company to enter the PEL 56 and PEL 91 blocks.
Following the closing of the agreement, Galp retains a non-operating stake in 40% on PEL 83 while TotalEnergies controls another 40% and becomes the licensee. NAMCOR and Custos maintain a 10% each.
The operation reorganizes the presence of both companies in offshore exploration in Namibia and expands Galp’s exposure to different assets in the Orange Basin.
Galp acquires stakes in PEL 56 and PEL 91
As part of the exchange, Galp acquires a stake in 10% off PEL 56, license that houses the Venus discovery, in addition to a 9.39% in PEL 91.
In PEL 56, TotalEnergies continues as operator with a stake of 35,25% QatarEnergy owns another 35,25% NAMCOR maintains a 10%and Impact retains the9,5%remaining.
Meanwhile, PEL 91 is divided between TotalEnergies, with a33,085%; QatarEnergy, con un 33,025% NAMCOR, with a 15%; Impact, with a 9,5%; and Galp, with a 9,39%.
With this new structure, TotalEnergies takes the lead in the three licenses involved in the transaction, while Galp maintains a significant stake in Mopane and diversifies its offshore portfolio in Namibia.
TotalEnergies will finance part of the development of Mopane
The closing of the transaction also activates a financing mechanism related to the eventual development of Mopane. According to Galp, the agreement will cover the 50% of their investments corresponding to the first development of the discovery, thus reducing its direct capital requirements without giving up its 40% stake in PEL 83.
For TotalEnergies, the transaction means taking control of one of the most significant discoveries made in recent years in Namibian waters. The new structure also combines the knowledge gained by Galp during the Mopane exploration with TotalEnergies’ experience in the development and operation of large-scale projects offshore projects.
Mopane is preparing a new drilling campaign
With the agreement finalized, attention will now turn to the next phase of exploration and evaluation of the Mopane discovery. Galp noted that preparations are ongoing for a new drilling campaign, scheduled to begin in the fourth quarter. This work will provide additional subsurface information and further the assessment of the commercial potential of the identified resources.
TotalEnergies and Galp are also considering drilling at least three wells in PEL 83 over the next two years this campaign will be crucial to reducing geological and technical uncertainties before the partners can move towards an eventual investment decision for the development of the field.
At the same time, TotalEnergies is strengthening its presence in the Orange Basin by incorporating the Mopane operation into its current position on Venus.
Venus is moving towards a possible investment decision
The transaction also gives Galp direct exposure to the Venus discovery through its new stake in the 10% off PEL 56. Venus this is another of Namibia’s major offshore discoveries and remains under the operation of TotalEnergies. The company continues to work on the development concept while partners advance the studies necessary for a final investment decision.
For Galp, the agreement allows it to distribute its exposure across several licenses without abandoning Mopane, for TotalEnergies, it represents a greater concentration of operational responsibility over strategic assets in the Orange Basin.
The closing of the transaction thus opens a new stage for both companies in Namibia, with Mopane moving towards a new exploration and appraisal campaign and Venus progressively approaching a possible commercial development phase.
The new ownership structure allows TotalEnergies to strengthen its operational role in the Orange Basin, while Galp maintains significant exposure to Mopane and expands its presence across other offshore licenses.
The upcoming drilling activities will provide additional technical data to assess Mopane’s resources and support future decisions regarding the development of the discovery.
Source: Offshore Energy
Photo: Shutterstock
