Galp’s New Drilling Campaign: A Bold Bet in Namibia’s Orange Basin

Galp has launched a new drilling phase to assess the potential of Mopane, off the coast of Namibia, marking a turning point for the development of what could become the country’s largest oil discovery.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Portuguese energy company Galp has started an exploration and appraisal campaign on its strategic block in the Orange Basin off the coast of Namibia. On October 23, the first of four planned wells was drilled, targeting the Mopane field, a significant discovery made earlier this year. This program aims to clarify the potential of this oil reserve, estimated to hold billions of barrels.

This campaign is being conducted in blocks 2813A and 2814B, under Petroleum Exploration License 83, where Galp holds a majority 80% stake, alongside Custos Energy and state-owned Namcor, each holding 10%. Canadian company Sintana Energy, a 49% shareholder in Custos, confirmed that the Mopane 1-A well has begun, aiming to further validate the quality of the oil field discovered in previous drillings.

Galp announced in April that the Mopane field could contain up to 10 billion barrels of oil equivalent. The first drilling phase had already identified significant columns of light oil in high-quality sands, with the Mopane-1X and Mopane-2X wells revealing a substantial lateral extension of the reservoir. This time, the goal is to deepen the understanding of the field’s characteristics to confirm its economic viability and position it on the global map of top-tier oil reserves.

Development of the Orange Basin: A Strategic Challenge for Namibia

The Orange Basin has become one of the most sought-after regions in the oil exploration sector. Since major discoveries by TotalEnergies and Shell in 2022, an increasing number of international oil companies have turned to this region. To date, Mopane represents the largest confirmed discovery in the Orange Basin, a project that could transform Namibia’s economy.

The Namibian government, although currently a non-producer of hydrocarbons, sees these discoveries as an opportunity to diversify its economy and enter the global oil market. Oil production could begin by the end of the decade, with forecasts suggesting that TotalEnergies’ Venus project could start production as early as 2029, followed by Mopane in 2030, with a potential plateau of 211,000 barrels of oil equivalent per day by 2037.

Galp and the Challenge of International Cooperation

In a context of intense competition, Galp has announced its intention to reduce its stake in the PEL 83 block from 80% to 40%, allowing an international partner to join the project. While the company has confirmed strong interest from major oil companies, such as Petrobras, it has stated that no decision will be made before the completion of the current drilling campaign, scheduled for 2025. Felipe Silva, Galp’s CEO, stressed that the company is not under pressure to secure a partner in the short term.

This cautious approach reflects Galp’s strategy to optimize the value of the discovery by focusing on risk reduction before considering a partnership. In the meantime, the company is relying on this drilling campaign to confirm the Mopane field’s potential and attract partners capable of financing future development phases.

An Economic Transformation in Perspective

Analysts agree that the rise of Namibia’s oil sector could redefine the economy of this Southern African country. In addition to Galp, other industry giants like Chevron and TotalEnergies plan to launch drilling campaigns in the Orange Basin by the end of the year. With significant production prospects, Namibia could quickly establish itself as a key player in the African oil sector, potentially contributing to the continent’s energy independence.

The commitment of multinational companies in the Orange Basin represents an opportunity for economic diversification for Namibia, which remains heavily reliant on mineral resources. If ongoing drilling campaigns confirm the potential of oil reserves, investments could flow in, transforming the economic and energy landscape of the region.

The US Treasury Department has imposed sanctions on more than 50 entities linked to Iranian oil exports, targeting Chinese refineries and vessels registered in Asia and Africa.
Khartoum et Juba annoncent un mécanisme commun pour protéger les oléoducs transfrontaliers, sans clarifier le rôle des forces armées non étatiques qui contrôlent une partie des installations.
The Namibian government signed an agreement with McDermott to strengthen local skills in offshore engineering and operations, aiming to increase oil sector local content to 15% by 2030.
Nigeria deploys a 2.2 million-barrel floating storage unit funded by public investment, strengthening sovereignty over oil exports and reducing losses from theft and infrastructure failures.
Despite open statements of dialogue, the federal government maintains an ambiguous regulatory framework that hinders interprovincial oil projects, leaving the industry in doubt.
Canada’s Sintana Energy acquires Challenger Energy in a $61mn all-share deal, targeting offshore exploration in Namibia and Uruguay. The move highlights growing consolidation among independent oil exploration firms.
The 120,000-barrel-per-day catalytic cracking unit at the Beaumont site resumed operations after an unexpected shutdown caused by a technical incident earlier in the week.
An agreement was reached between Khartoum and Juba to protect key oil installations, as ongoing armed conflict continues to threaten crude flows vital to both economies.
Alnaft has signed two study agreements with Omani firm Petrogas E&P on the Touggourt and Berkine basins, aiming to update hydrocarbon potential in key oil-producing areas.
Import quotas exhaustion and falling demand push Chinese independent refineries to sharply reduce Iranian crude volumes, affecting supply levels and putting downward pressure on prices.
Serbian oil company NIS, partially owned by Gazprom, faces newly enforced US sanctions after a nine-month reprieve, testing the country's fuel supply chain.
US-based Chevron appoints Kevin McLachlan, a veteran of TotalEnergies, as its global head of exploration, in a strategic move targeting Nigeria, Angola and Namibia.
Lycos Energy finalises the sale of its Alberta assets for $60mn, planning an immediate $47.9mn cash distribution to shareholders and the launch of a share buyback programme.
Russian oil output moved closer to its OPEC+ allocation in September, with a steady rise confirmed by Deputy Prime Minister Alexander Novak.
Fuel shortages now affect Bamako, struck in turn by a jihadist blockade targeting petroleum flows from Ivorian and Senegalese ports, severely disrupting national logistics.
McDermott has signed a memorandum of understanding with PETROFUND to launch technical training programmes aimed at strengthening local skills in Namibia’s oil and gas sector.
The example of OML 17 highlights the success of an African-led oil production model based on local accountability, strengthening Nigeria’s position in public energy investment.
ExxonMobil has signed a memorandum of understanding with the Iraqi government to develop the Majnoon oil field, marking its return to the country after a two-year absence.
Crude prices rose following the decision by the Organization of the Petroleum Exporting Countries and its allies to increase production only marginally in November, despite ongoing signs of oversupply.
Cenovus Energy modifies terms of its acquisition of MEG Energy by increasing the offer value and adjusting the cash-share split, while reporting record third-quarter results.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.