Galp Energia has entered into an agreement with TotalEnergies to exchange a 40% participating interest in PEL 83, home to the Mopane discovery, for a 10% stake in PEL 56, where the Venus discovery lies, and a 9.4% interest in PEL 91.
TotalEnergies, which already operates PEL 56 and PEL 91, will take over operatorship of PEL 83 under the deal.
Galp will retain 40% of PEL 83, ensuring continued alignment with TotalEnergies on advancing Mopane.
Both companies have committed to an exploration and appraisal programme of at least three wells over the next two years to further derisk the block and prepare for a development hub. The first potential well is being considered for 2026.
The firms have also signed a funding agreement under which TotalEnergies will carry 50% of Galp’s investment in the initial Mopane development. Galp will repay this carry once commercial oil production begins through 50% of its future cash flows from the project.
“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 deepwater operator, and significantly de-risk Mopane by aligning a concrete path forward for the asset,” said Galp Chairwoman Paula Amorim.
By securing a 10% position in PEL 56 and 9.4% in PEL 91, Galp gains exposure to the Venus development, where TotalEnergies is maturing plans for a 160,000 barrels-per-day FPSO, with a final investment decision expected in 2026.
“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,” Amorim said.
The transaction is subject to approval by Namibian authorities and joint venture partners, with completion targeted for 2026.
Upon completion, Galp and TotalEnergies will each hold 40% of PEL 83, with NAMCOR and Custos retaining 10% each.
In PEL 56, Galp will hold 10%, TotalEnergies 35.25%, QatarEnergy 35.25%, NAMCOR 10% and Impact 9.5%. For PEL 91, Galp will hold 9.39%, TotalEnergies will operate with 33.085%, QatarEnergy 33.025%, NAMCOR 15% and Impact 9.5%.
