TotalEnergies and Chevron are currently the top contenders to acquire a 40% operating stake in Galp Energia’s Mopane oil discovery offshore Namibia. The Mopane field, which is estimated to hold at least 10 billion barrels of oil, has attracted significant interest from global energy majors looking to tap into one of the world’s most promising new exploration frontiers. Namibia, a country with no current commercial oil production, is positioning itself to become a top-15 producer globally within the next decade.
Galp is expected to select a partner by the end of the year, with negotiations progressing well with a shortlist of preferred bidders aligned with the Mopane project. While TotalEnergies and Chevron are the frontrunners, other major firms like ExxonMobil, Shell, and Petrobras had also shown interest earlier in the process. Exxon withdrew from the bidding in June, while Petrobras was outbid by TotalEnergies.
Both TotalEnergies and Chevron already operate nearby oilfields in Namibia’s Orange Basin. TotalEnergies’ Venus project, which has a production capacity of 150,000 barrels per day, is close to Mopane and could provide valuable synergies, despite facing challenges due to its high gas content. Chevron, on the other hand, is looking to revitalize its frontier exploration strategy following mixed results from previous drilling efforts in Namibia.
For TotalEnergies, success in Namibia would strengthen Africa’s position in its upstream portfolio, which currently accounts for up to 40% of its global oil and gas output. The company is aiming to reach a final investment decision on the Mopane project next year.
The potential acquisition of a stake in Galp’s Mopane field represents a significant opportunity for both TotalEnergies and Chevron to expand their presence in Namibia’s burgeoning oil and gas sector. As negotiations continue and a partner is selected, the outcome of these talks could have far-reaching implications for the future of energy exploration in the region.
