TotalEnergies SE (EPA:TTE) has agreed to acquire a 40% interest
in Galp Energia SGPS SA’s (ELI:GALP) major offshore oil discovery
in Namibia’s Orange Basin, the companies confirmed in statements
this week. While the sale was expected, its structure reportedly
took the market by surprise.
The acquisition centres on Petroleum Exploration Licence (PEL)
83, where in early 2024 Galp announced a significant light-oil
discovery following the Mopane-1X and Mopane-2X wells, where
appraisal drilling and commercial-scale assessments continue.
The French energy major will acquire the 40% stake in the Mopane
discovery by granting the Portuguese integrated energy company a
10% interest in a block nearby and a 9.4% share of another Namibian
deposit, Galp said on Tuesday (December 9).
According to Bloomberg, Galp’s shares sank as much as
15% in Lisbon, the most since the early days of the pandemic in
March 2020, after the closely watched deal fell short of
expectations of an outright acquisition for the stake with some
cash paid upfront.
Analysts at UBS Group AG cited by the news agency last week had
estimated the stake could attract about €200mn (around $217mn) in
upfront cash, as well as roughly €3bn (about $3.25bn) in project
costs that the buyer would carry on Galp’s behalf.
“The market was probably expecting a direct sale and not a
swap,” Antonio Pedro Fonseca, head of trading at Banco Invest in
Lisbon, is quoted as saying. “That explains the drop in Galp shares
today.”
Galp retains operatorship of the block. The firm has been
accelerating its subsurface studies and development planning after
reporting high-quality reservoir sections and strong flow test
indicators across Mopane’s stacked targets.
For TotalEnergies, the deal expands an already sizeable Namibian
footprint. The company is operator of neighbouring acreage in the
Orange Basin, where discoveries such as Venus and Cronos have
highlighted the basin’s geological potential. The addition of the
Mopane area consolidates its regional strategy and positions it for
future development synergies.
Namibia has emerged as a hotspot for offshore exploration
following multiple high-impact finds by Shell (LSE:SHEL),
TotalEnergies and Galp since 2022. The government has said it
expects the first commercialisation concepts for the basin to take
shape over the next several years as appraisal data is gathered and
operators evaluate export, FPSO and midstream options.
Galp said it will continue with appraisal and technical work to
confirm reserves size, development feasibility and potential
phasing. TotalEnergies said the acquisition aligns with its global
upstream portfolio strategy focused on large, low-cost,
low-emission deepwater projects.
According to Galp’s drilling updates, the Mopane-1X well
encountered more than 200 metres of light-oil column, while
Mopane-2X confirmed stacked reservoirs. It previously estimated
that the complex could contain up to 10bn boe, based on early
appraisal data released in April 2024.
The Orange Basin has seen at least 10 major discoveries since
2022, and government officials estimate cumulative offshore
investment could exceed $40bn if multiple projects proceed to
development.
© 2025 bne IntelliNews, source Magazine
