Exxon Mobil ,Shell , TotalEnergies and Equinor are among major energy companies evaluating bids for a 40% stake in Galp Energia’s Mopane oil field discovery offshore Namibia.
Based on Galp Energia’s estimates for 10B boe in the Mopane complex, according to Bloomberg, the entire discovery could be worth approximately N$362 billion (US$20 billion) or more, according to the report.
Galp Energia which is working with a financial advisor to sell half of its 80% holding in the asset, reportedly has called for first round bids in mid-June.
This comes as the Portuguese company revealed that capital limitations are the main reason behind its decision to sell its stake in the exploration block.
Galp Chief Executive Filipe Silva said financial demands associated with the development of multiple Floating Production, Storage, and Offloading (FPSO) projects surpass Galp’s current financial capacity.
Galp has an 80% stake in Petroleum Exploration Licence 83 (PEL 83), which covers almost 10,000 square kilometres (3,860 square miles) in the Orange Basin, with Namibia’s national oil company NAMCOR and independent exploration group Custos each holding another 10%.
Lisbon-based Galp is also reported to be offering to cede control of the project’s development to the potential buyer.
An FPSO is a floating facility, typically converted from an oil tanker hull, designed to process crude oil, water, and gases from sub-sea oil wells using hydrocarbon processing equipment.
The company has invested approximately N$1.5 billion towards upstream projects in Namibia in the first quarter of 2024.
The Mopane field is located in the Orange Basin, where Shell and TotalEnergies have made several oil and gas discoveries.-miningandenergy/bloomberg
