French oil major TotalEnergies has emerged as the leading bidder to acquire a stake in Galp’s major oil discovery off the coast of Namibia, according to people familiar with the matter cited by Bloomberg on Tuesday, 2 December.
According to the agency, the sources said the energy giant has outpaced major rival oil companies competing for the 40% stake Galp is selling in the Mopane field. The individuals asked not to be identified because the negotiations are private.
A Galp representative reiterated that the company expects to secure a partner before the end of the year from a shortlist of candidates, but declined to provide further details. A spokesperson for TotalEnergies also declined to comment.
Galp had previously announced plans to divest half of its 80% stake in Mopane to a partner that would take over the operation of the project. UBS Group AG analysts said in an October note that they expect the Portuguese multinational to sell the 40% stake for around 200 million euros in upfront cash, plus approximately 3 billion euros in project costs that the buyer would cover on Galp’s behalf.
The Mopane discovery lies in the Orange Basin in Namibia, one of the world’s most promising offshore exploration zones, which has already attracted interest from companies such as TotalEnergies and Shell. Reuters previously reported that Chevron — whose representatives declined to comment when contacted by Bloomberg on Tuesday — was also in the race.
For TotalEnergies, acquiring a stake and operatorship in Mopane would deepen its entry into Namibia’s emerging exploration hotspot. The company is still negotiating development terms with the Government for its nearby Venus discovery — a technically challenging project that may require up to 11 billion dollars to build a floating production vessel with capacity for 150,000 barrels per day and subsea wells, according to CEO Patrick Pouyanné in September.
Galp has estimated that the Mopane complex could hold up to 10 billion barrels of oil equivalent, which would place it among the largest global oil discoveries of the past decade. The company also has upstream operations in Brazil and in São Tomé and Príncipe, off the west coast of Africa.
In October, Galp executives said the Lisbon-based company was in advanced negotiations with several parties to sell the stake.
