Portuguese company Galp Energia is reportedly planning to sell half of its stake in an exploration block offshore Namibia, where it has made a major oil discovery estimated to hold at least 10 billion barrels of oil and gas equivalent, according to Reuters.
Galp is reported to have hired Bank of America to run the sale process, which could raise several billion dollars for Galp, although the exact value is unclear. Bank of America declined to comment.
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 development of the project to the potential buyer, expected to be a major international rival with a strong track record in project management.
Galp declined to comment, but has previously indicated it could launch a process to raise capital for the development of its projects in Namibia, as they could reach a large scale.
