TotalEnergies and Galp have agreed to swap their stakes across three offshore oil licences in Namibia, positioning TotalEnergies as the operator of the Mopane and Venus discoveries.
Under the terms, TotalEnergies will acquire from Galp a 40% operated interest in petroleum exploration license 83 (PEL 83), which includes the Mopane oil discovery in Namibia's Orange Basin.
Galp will obtain a 10% participating interest in PEL 56, which holds the Venus discovery, and a 9.39% participating interest in PEL 91 from TotalEnergies.
TotalEnergies will also carry 50% of Galp’s capital expenditures for undertaking exploration and appraisal work on the Mopane discovery as well as the initial development phase on PEL 83.
This carried amount will be reimbursed to TotalEnergies through 50% of Galp’s future cash flows generated by the project.
The transaction is expected to be completed in 2026, subject to approvals from Namibian authorities and joint venture partners.
Upon closing, TotalEnergies will hold a 40% operated interest in PEL 83, a 35.25% operated interest in PEL 56 and a 33.085% operated interest in PEL 91.
Galp will have a 40% interest in PEL 83, a 10% interest in PEL 56 and a 9.39% interest in PEL 91.
Other partners in PEL 83 include Namcor and Custos with a 10% interest each.
In PEL 56, the partners include QatarEnergy with a 35.25% stake, Namcor with a 10% interest and Impact with a 9.5% interest.
Besides TotalEnergy and Galp, the other companies holding an interest in PEL 91 are QatarEnergy (33.025%), Namcor (15%) and Impact (9.5%).
TotalEnergies chairman and CEO Patrick Pouyanné said: “TotalEnergies will leverage its recognised operatorship track record to progress towards profitable and sustainable developments of both Venus and Mopane discoveries.
“By enabling the creation of a producing hub in Namibia, we aim to achieve synergies that will create long-term value for both Namibia and the stakeholders.
“We are eager to keep building on our collaboration with the Namibian authorities in order to deliver both developments.”
TotalEnergies and Galp will launch an exploration and appraisal campaign over the next two years. The campaign includes three wells, with the first planned for 2026, targeting further de-risking of resources and progress toward Mopane’s development.
TotalEnergies, as the operator of PEL 56, will develop the Venus discovery and is working to secure all conditions for a potential final investment decision in 2026.
The development concept for Venus includes a 160,000 barrels per day floating production, storage and offloading unit.
Since beginning operations in Namibia in 2012, Galp has carried out extensive appraisal activities, including multiple 3D seismic surveys and the drilling of eight exploration and appraisal wells. Notably, five of these wells have been drilled since December 2023, leading to the Mopane discovery.
Galp chairman Paula Amorim said: “After Galp’s remarkable exploratory efforts in Namibia, leading PEL 83 with an 80% stake, we are happy to partner with TotalEnergies, a highly experienced ultra-deep-water operator, and significantly de-risk Mopane by aligning a concrete path forward for the asset.
“We expand our footprint in Namibia’s prolific Orange basin, reinforcing our commitment to the development of the country’s oil and gas industry, whilst strengthening our upstream portfolio with high-potential projects such as Venus, which will further support Galp’s continued growth profile.”
