TotalEnergies and Galp have agreed to swap stakes in three offshore oil licenses in Namibia. TotalEnergies will become the operator of the Mopane and Venus discoveries, with TotalEnergies acquiring a 40% operated interest in PEL83, while Galp will gain interests in PEL56 and PEL91. TotalEnergies will carry 50% of Galp’s capital expenditures and be reimbursed through future cash flows. The transaction is set to be completed in 2026, pending approvals.

TotalEnergies and Galp will hold significant interests in PEL83, PEL56, and PEL91 upon closing. Other partners in the licenses include Namcor, Custos, QatarEnergy, and Impact. TotalEnergies aims to leverage its operatorship track record to develop the discoveries profitably and sustainably, creating long-term value for Namibia and stakeholders.

Both companies plan to launch an exploration and appraisal campaign over the next two years, including three wells targeting de-risking of resources and advancing Mopane’s development. TotalEnergies will develop the Venus discovery, aiming for a final investment decision in 2026 with a floating production, storage, and offloading unit. Galp has conducted extensive appraisal activities in Namibia since 2012, leading to the Mopane discovery.

Galp’s chairman expressed satisfaction with the partnership with TotalEnergies, highlighting the de-risking of Mopane and expansion in Namibia’s Orange basin. The companies are committed to developing Namibia’s oil and gas industry and strengthening their portfolios. The asset swap deal marks a significant step towards achieving these goals.

Read more at Yahoo Finance: TotalEnergies and Galp enter asset swap deal in Namibia