TotalEnergies announced on Tuesday that it has reached an agreement with Portuguese company Galp to become the operator of a license that includes the promising Mopane oil discovery, located offshore Namibia.
Under the terms of the deal, the French energy group will acquire a 40% operated stake in the PEL83 license from Galp, which will see its own share reduced from 80% to 40%. Namibia's state oil company Namcor and Custos will each retain their 10% stakes.
TotalEnergies is set to cover 50% of Galp's investment costs for exploration and appraisal of the Mopane discovery, as well as for the initial development phase on PEL 83.
The two groups have agreed to launch an exploration and appraisal campaign consisting of three wells over the next two years, with the first well planned for 2026.
The agreement also includes Galp acquiring a 10% stake in PEL56--which contains the Venus discovery--and a 9.39% stake in PEL91 from TotalEnergies.
In a statement, TotalEnergies emphasized that the agreement will allow it to position itself as operator of the two largest oil discoveries in Namibia, paving the way for the development of a major value-generating production hub over the long term.
"We are very pleased to have been chosen by Galp as partner and operator for the prolific PEL83 license," said Patrick Pouyanné, CEO of TotalEnergies.
The transaction is expected to be finalized in 2026.
On the Paris stock exchange, TotalEnergies shares were virtually unchanged (-0.1%) following the announcement.
