TOTALEnergies has won the keenly contested bid for farm in into Galp Energia’s Petroleum Exploration Licence (PEL) 83 in Namibia.
With 40% interest, the French explorer will be operator of the acreage, which hosts the huge Mopane discovery.
Galp will in turn acquire a 10% participating interest in TOTAL-led PEL 56 license, hosting the Venus discovery.
QatarEnergy, which is TOTAL’’s partner in PEL 56, did not go along into PEL 83.
“The transaction positions TOTALEnergies as the operator of the two largest oil discoveries in Namibia and opens the way for the development of a major producing hub, generating long-term value for the country and partners”, TOTAL said in a release..
TOTALEnergies will carry 50% of Galp’s capital expenditures for the exploration and appraisal of the Mopane discovery and the first development on PEL83. The carry will be repaid through 50% of Galp’s future cash flows from the project.
TOTALEnergies and Galp agreed to launch an exploration and appraisal campaign including three wells over the next two years, with a first well planned in 2026, to further derisk resources and progress diligently toward the development of the Mopane discovery.
FID on course for Venus in 2026
TOTAL reiterates its full commitment to the development of the Venus discovery, “and is working to secure all conditions enabling a potential final investment decision in 2026”.
Completion of the transaction is subject to customary third party approvals from the Nambian authorities and joint ventures parties, with completion expected to occur in 2026.
After completion of the transaction, TOTALEnergies will own:
a 40% operated interest in PEL83 alongside Galp (40%), Namcor (10%) and Custos (10%);
a 35.25% operated interest in PEL56 alongside QatarEnergy (35.25%), Galp (10%), Namcor (10%) and Impact (9.5%);
a 33.085% operated interest in PEL91 alongside QatarEnergy (33.025%), Namcor (15%), Galp (9.39%) and Impact (9.5%).
