Supermajors Vie for Stake in Galp’s Massive Mopane Oil Discovery in Namibia

The world's largest oil companies are competing to secure a share of Galp's significant Mopane oil discovery in Namibia's Orange Basin, estimated at 10 billion barrels of oil equivalent.

Partagez:

The world’s leading oil companies are seeking to get involved in Galp’s major Mopane oil discovery in the Orange Basin in Namibia. This discovery, considered the most important so far in this dynamic exploration region, has generated strong interest among international investors.

Galp currently holds 80% of the Mopane development, alongside the national company Namcor and Namibia-based Custos, each holding 10%. Sintana Energy, a Toronto-based exploration company, holds a 49% stake in Custos, thus enhancing the interest of foreign investors in this project.

Investment Opportunities and Potential Partnerships

Galp is willing to sell up to half of its stake in Mopane, which would leave it with 40% of the discovery. However, before proceeding with this sale, the company plans to drill four additional wells on the license in the fourth quarter of 2024. Filipe Silva, CEO of Galp, stated in July that he was not in a hurry to reduce the risks associated with the discovery.

Any potential partner company must demonstrate a willingness to quickly develop the field and contribute the necessary capital expenditures. Galp expects to finalize a partnership by the end of 2025, although the bidding process is already open, indicating strong interest from the supermajors.

Interest from Supermajors and Development Prospects

Sources report “tremendous” interest from supermajors, including Chevron, TotalEnergies, Woodside, and Shell, in a stake in Mopane. Silvia dos Anjos, Exploration and Production Director at Brazilian oil and gas giant Petrobras, expressed the Brazilian state-owned company’s intention to seek the entire 40% stake available.

Petrobras aims to expand its presence in Southwest Africa, capitalizing on its deepwater experience and recent acquisitions of exploration stakes in São Tomé and Príncipe and South Africa. According to Anjos, Africa represents a strategic opportunity for the company’s international growth.

Economic Impact and Future of Oil Production in Namibia

The Mopane discovery, located in Petroleum Exploration License 83 of the Orange Sub-basin, covers an area of 535 square kilometers with water depths of up to 1,680 meters, according to data from Commodity Insights.

Galp has drilled two wells, Mopane-1X and Mopane-2X, which have revealed significant columns of light oil in high-quality reservoir sands, while also confirming a lateral extension, as the wells were drilled 8 kilometers apart.

According to estimates from Commodity Insights, the Mopane field is expected to reach commercial production by 2030 and plateau at 211,000 barrels of oil equivalent per day by 2037. This discovery adds to the significant Venus and Graff discoveries made by TotalEnergies and Shell in 2022, enhancing the appeal of the Orange Basin for major exploration and production firms.

Next Steps and Challenges to Overcome

Galp plans to continue drilling additional wells to fully assess the potential of Mopane before finalizing any stake sale agreements. The need for partners capable of quickly mobilizing financial and technical resources is a key challenge to accelerate the field’s development.

Furthermore, Namibia, which currently does not produce any hydrocarbons, could become a major player in the African oil sector, thereby transforming its economy through ongoing investments and exploration activities in the region.

CNOOC Limited’s Hong Kong subsidiary and KazMunayGas have concluded a nine-year exploration and production contract covering nine hundred and fifty-eight square kilometres in Kazakhstan, sharing investment and operations equally.
Donald Trump announced that the United States will no longer oppose Chinese purchases of Iranian oil, immediately triggering a drop in global crude oil prices and profoundly reshaping international energy trade partnerships.
Research firm S&P Global Commodity Insights lifts its outlook for the fourth straight year, betting on three point five mn barrels per day from 2025 despite lower prices.
Enbridge plans to expand its infrastructure to increase oil transportation from the American Midwest to the Gulf Coast, anticipating rising exports and addressing current market logistical constraints.
US commercial crude inventories significantly decline by 3.1 million barrels, widely surpassing initial forecasts and immediately pushing international oil prices higher.
The UK could have hydrocarbon reserves twice as large as current official estimates, according to Offshore Energies UK, highlighting the impact of fiscal policies on forecasts and the economic future of the North Sea.
Following US strikes in Iran, international energy companies partially evacuate their teams from Iraq as a precaution, while Lukoil maintains its entire personnel on southern oilfields.
Chinese independent refineries remain cautious amid rising Iranian crude prices driven by escalating Iran-Israel tensions, potentially threatening access to the strategic Strait of Hormuz.
Gazprom, affected by a historic $6.9bn loss in 2023, is offering Pakistani state-owned firm OGDCL its petroleum assets in Nigeria to strengthen its presence in Asia’s energy market, according to Pakistani sources.
Donald Trump urges control of oil prices following U.S. military action against Iranian nuclear facilities, amid escalating tensions around the strategic Strait of Hormuz, threatening to significantly impact global markets.
PermRock Royalty Trust announces a monthly distribution of $539,693 to unit holders, impacted by reduced oil volumes and prices in April, partly offset by increased natural gas sales.
Permian Basin Royalty Trust announces a reduced distribution for June due to ongoing excess costs at Waddell Ranch properties and lower volumes from Texas Royalty Properties.
Three months after starting production, Norway’s Johan Castberg oil field, located in the Barents Sea, reaches its full capacity of 220,000 barrels per day, significantly increasing energy supplies to Europe.
The Middle East conflict forces Iraq to delay certain oil developments, disrupting field operations despite temporary stability in production and exports amid growing logistical tensions.
New U.S. estimates reveal nearly 29 billion barrels of oil and 392 Tcf of technically recoverable natural gas on federal lands, marking significant progress since the last assessment in 1998.
The United Kingdom tightens sanctions against Russia's oil sector by targeting twenty tankers operating in the "shadow fleet" and Rosneft Marine, amid rising crude prices exceeding the G7-imposed price cap.
French manufacturer Vallourec will supply Qatar with premium OCTG tubes in a contract worth an estimated $50 million, supporting the planned expansion of oil and gas operations by 2030.
SBM Offshore has secured an operations and maintenance contract from TotalEnergies for the FPSO GranMorgu unit, the first such project in Suriname, covering operational preparation and post-production maintenance for at least two years.
Maurel & Prom acquires additional stakes in two offshore oil blocks in Angola, consolidating its existing assets for an initial sum of $23mn, potentially rising based on market developments and production performance.
Long a major player in OPEC, Iran sees its influence on the oil market significantly reduced due to US sanctions, Israeli strikes, and increasing reliance on exports to China.