TotalEnergies has signed an agreement with Galp to become the operator of Namibia’s Mopane and Venus offshore oil discoveries through a strategic asset swap. TotalEnergies will acquire a 40 percent interest in PEL 83, while Galp will receive interests in PEL 56 and 91. This marks TotalEnergies’ first formal operatorship of Mopane.

The deal solidifies TotalEnergies’ lead developer position in Namibia’s Orange Basin, where it already operated Venus. By controlling both Mopane and Venus, TotalEnergies aims to create a multi-field producing hub offshore Namibia.

TotalEnergies will cover 50 percent of Galp’s capital spending for exploration and development on PEL 83, with repayment linked to future cash flow. The partners plan an exploration campaign with three wells over the next two years, starting in 2026.

The transaction focuses on restructuring ownership and operatorship to enhance development synergies. TotalEnergies believes consolidating operatorship will improve engineering, infrastructure planning, and commercialization efforts across the basin’s assets.

TotalEnergies maintains its commitment to advancing Venus towards a final investment decision in 2026, pending technical and commercial assessments. The company expects the agreement to close in 2026, pending regulatory and partner approvals.

The agreement is crucial as Namibia emerges as a promising petroleum province, with the Orange Basin potentially rivaling past African frontier plays. TotalEnergies’ consolidation of operatorship over its flagship discoveries is a significant step towards Namibia’s first oil production later this decade.

Read more at Yahoo Finance: TotalEnergies Takes Control of Namibia’s Largest Oil Discoveries