TotalEnergies is set to significantly expand its footprint in Namibia's burgeoning offshore energy sector, announcing plans to acquire a 40% stake in Galp Energia's coveted exploration license. This strategic move includes the highly promising Mopane discovery, signalling a deepened commitment from the French energy giant to one of the world's most exciting new oil frontiers.
The deal, which is subject to customary regulatory approvals, sees TotalEnergies stepping in as a major partner in Petroleum Exploration License (PEL) 83, located in the Orange Basin offshore Namibia. For Lisbon-headquartered Galp, it's an intelligent move to de-risk its significant Mopane discovery, bringing in a supermajor with deep pockets, extensive technical expertise, and a proven track record in complex deepwater developments.
Namibia has rapidly emerged as a global hotspot for hydrocarbon exploration, attracting considerable attention from major players following a string of high-impact discoveries since 2022. TotalEnergies itself made the significant Venus discovery in Block 2913B, while Shell also reported promising finds with Graff and Jonker. This latest partnership on Mopane further solidifies the Orange Basin's status as a top-tier exploration province, potentially unlocking substantial new energy resources.
Galp had previously announced a significant discovery of light oil in the Mopane-1X well in January 2024, followed by successful appraisal work at Mopane-2X just a few weeks later. The Mopane wells identified significant columns of light oil in high-quality reservoir sands, confirming the commercial potential of the area. This immediate success undoubtedly made the asset incredibly attractive to TotalEnergies, which already possesses crucial operational experience in the region.
"Bringing TotalEnergies onto the PEL 83 license is a clear testament to the quality and scale of our Mopane discovery," remarked an industry analyst familiar with the area. "Galp has done an excellent job de-risking the play, and now they're bringing in a partner who can help accelerate the path to development. It's a win-win."
The transaction means TotalEnergies will now hold a substantial non-operated interest alongside Galp, which will retain a 40% operating stake. The remaining interests are held by National Petroleum Corporation of Namibia (NAMCOR) with 10% and Custos Energy and Sintana Energy, each holding 10% through their respective interests in the local company, Custos Energy. This diversified partnership structure is typical for large-scale, high-capital deepwater projects.
This deal also aligns perfectly with TotalEnergies' broader strategy to focus on low-cost, low-emission oil and gas resources, particularly those with significant upside potential. Namibia’s geology offers exactly that, with high-quality reservoirs and the potential for substantial volumes of light crude. The company's prior success with Venus positions them uniquely to leverage synergies and optimize future development plans across the basin.
Looking ahead, the partnership is expected to accelerate the appraisal program for Mopane, with further drilling and testing planned to fully delineate the discovery's size and commercial viability. A Final Investment Decision (FID) would follow successful appraisal, paving the way for what could be a multi-billion-dollar development project, bringing significant economic benefits to Namibia in terms of investment, job creation, and revenue. It's clear that the Orange Basin's story is far from over; in fact, with this new partnership, it's entering an exciting new chapter.
