TotalEnergies Expands Offshore Namibia Footprint With Galp Asset Swap, Gains Control of Mopane Discovery
TotalEnergies has strengthened its position in offshore Namibia after reaching an asset-swap agreement with Portugal’s Galp, granting the French major operatorship of the significant Mopane oil discovery.
Under the terms of the deal, Galp will transfer its 40% interest in the PEL83 license, which contains the Mopane discovery. In exchange, Galp will receive a 10% stake in TotalEnergies’ PEL56 license—home to the Venus discovery—and a 9.4% interest in the adjacent PEL91 license.
All three offshore blocks are located side by side, enhancing operational and geological synergies.
TotalEnergies will also fund 50% of Galp’s exploration and appraisal costs at Mopane, with Galp expected to reimburse these expenditures from future project revenues. QatarEnergy remains the second-largest partner in the PEL56 and PEL91 licenses.
The market reaction reflected investor skepticism about the balance of the transaction. Shares of TotalEnergies rose 0.6%, while Galp’s stock fell by more than 11%.
Analysts at RBC said the agreement appears to be more advantageous for TotalEnergies. They highlighted the absence of an upfront cash payment and noted that Galp’s obligation to fully repay exploration and appraisal costs could weigh on investor sentiment.
While the inclusion of the Venus asset helps align the strategic interests of both companies, it also implies higher capital expenditure commitments for Galp in the coming years.
TotalEnergies and Galp plan to drill three wells at the Mopane prospect over a two-year period beginning in 2026. Prior to the agreement, TotalEnergies and Chevron were reported to be leading contenders for a stake in the discovery.
TotalEnergies said the transaction positions the company as operator of Namibia’s two largest oil discoveries—Mopane and Venus—laying the groundwork for the potential development of a major offshore production hub.
The companies expect to complete the transaction in 2026, subject to regulatory approvals and customary conditions.
Galp Chair Paula Amorim said the partnership with TotalEnergies will help reduce project risks and provide a clearer and more efficient pathway for the future development of the Mopane discovery.
