By: Nghiinomenwa-vali Hangala
TotalEnergies has received the green light from the Namibian government to acquire a 40% operating interest in the PEL83 license, which holds the Mopane Oil discovery from Galp.
This approval makes the oil giant the operator of the two largest oil discoveries in the country.
In exchange, it will give Galp a 10% participating interest in the PEL56 license, which holds the Venus discovery, and a 9.39% participating interest in the PEL91 license.
TotalEnergies announced the government’s approval on Wednesday.
The Venus well is the one that is about to be developed and will lead to Namibia’s first oil production, while Mopane wells have been found to have potential reservoirs of a commercial scale.
The oil block/asset swap transaction has remained subject to government approval since the two companies concluded the arrangement last December.
TotalEnergies will now assume operatorship of the block, with a Final Investment Decision (FID) expected in 2028 and probable first oil by 2033.
After the completion of this transaction, TotalEnergies now holds a 40% operating interest in the PEL83 license alongside Galp (40%), Namcor (10%) and Custos (10%).
It also has a 35.25% operating interest in the PEL56 license, alongside QatarEnergy (35.25%), Galp (10%), Namcor (10%) and Impact (9.5%), as well as a 33.09% operating interest in PEL91 alongside QatarEnergy (33.03%), Namcor (15%), Impact (9.5%) and Galp (9.39%).
In a statement, TotalEnergies indicated gratitude to the Namibian authorities for their swift approval of the transaction with Galp, its new partner.
“TotalEnergies’ entry as operator of the giant Mopane discovery marks a key milestone in our journey to establish a major production hub in Namibia”, said Patrick Pouyanné, Chairman and CEO of TotalEnergies.
According to Pouyanné the transaction has strengthened the position of TotalEnergies in the Orange Basin, where most of Namibia’s oil discoveries have been made.
“This transaction positions TotalEnergies as the operator of Namibia’s two largest oil discoveries and strengthens its position in the Orange Basin, supporting the long-term value creation from prolific licenses,” he stated.
Pouyanné explained that exploration opportunities are already lining up beyond the Mopane development, which they will start appraising as early as the second half of 2026.
Aiming to take the FID of the project in 2028, after a 3-well appraisal campaign.
TotalEnergies is also continuing to advance the Venus development through FEED, engineering optimisation, and regulatory engagement, with the company maintaining its target of reaching Final Investment Decision by the end of this year.
TotalEnergies has been present in Namibia since 1964 and employs around 70 people.
TotalEnergies is also the 3rd largest fuel distributor in the country, with 43 service stations.
In line with its multi-energy strategy, the company is looking for local opportunities to develop low-carbon projects in the country.
The company operates PEL56, PEL83 & PEL91 exploration licenses and is progressing the completion of its entry as operator into PEL104.
erastus@thevillager.com.na
