Galp and TotalEnergies have executed an asset swap agreement in Namibia’s prolific Orange Basin. TotalEnergies will acquire an operated interest in the PEL83 block (Mopane discovery) in exchange for giving Galp stakes in two other nearby blocks, PEL56 (Venus discovery) and PEL91.
TotalEnergies will acquire a 40% operated interest in the PEL83 license from Galp, where the Mopane oil discovery was made.
In exchange, Galp will receive a 10% interest in PEL56 (Venus discovery) and a 9.39% interest in PEL91.
TotalEnergies will operate all three blocks, giving them operatorship of both the Mopane and Venus discoveries.
TotalEnergies will cover half of Galp’s initial capital expenses for exploring, appraising, and developing the Mopane discovery. Galp will repay this amount using half of its future earnings from the project.
Over the next two years, the companies plan to drill at least three exploration and appraisal wells in PEL83, with the first planned for 2026. TotalEnergies is also aiming for a final investment decision on the Venus development in PEL56 in 2026.
Upon completion of the transaction (expected in 2026, pending regulatory approvals), the ownership stakes in the blocks will be as follows:
PEL83: TotalEnergies (40% operator), Galp (40%), Namcor (10%), and Custos (10%).
PEL56: TotalEnergies (35.25% operator), QatarEnergy (35.25%), Galp (10%), Namcor (10%), and Impact (9.5%).
PEL91: TotalEnergies (33.085% operator), QatarEnergy (33.025%), Namcor (15%), Galp (9.39%), and Impact (9.5%).
Note by Alessandro Bazzoni