TotalEnergies and Chevron vie for stake in Namibia field

TotalEnergies and Chevron have emerged as the leading contenders to acquire a 40% operating stake in Galp Energia’s Mopane oil discovery offshore Namibia, four industry sources familiar with the talks have told Reuters.

The Mopane field, estimated to hold at least 10 billion barrels of oil, has drawn intense interest from global energy majors eager to enter one of the world’s most promising new exploration frontiers. Namibia, which currently has no commercial oil production, is positioning itself to become a top 15 producer globally within the next decade.

Galp plans to select a partner by the end of the year, and a company spokesperson confirmed that negotiations were progressing “with a shortlist of preferred bidders strongly aligned with Mopane,” though names were not disclosed. 

“Negotiations regarding Namibia are progressing with a shortlist of preferred bidders strongly aligned with Mopane,” a Galp press officer was quoted to say. The official declined to name the companies.

More than 12 oil companies including Exxon, Shell and Petrobras had expressed interest in the Mopane field, though Exxon withdrew in June and Petrobras said that it had been outbid by Total.

Namibia’s geology has proven challenging to many majors, including Shell, which wrote down its discoveries as uncommercial. Chevron found no commercial reserves after drilling a well in Namibia’s Orange basin this year but CEO Mike Wirth said it still yielded valuable information to evaluate future drilling.

Both TotalEnergies and Chevron already operate nearby oilfields in Namibia’s Orange basin. TotalEnergies’ 150,000-barrel-per-day Venus project sits close to Mopane and could offer valuable synergies, though its high gas content poses development challenges. The French company aims to reach a final investment decision on the Venus project next year.

Chevron, meanwhile, is seeking to reinvigorate its frontier exploration strategy following mixed results from earlier Namibian drilling.

For TotalEnergies, success in Namibia would reinforce Africa’s vital role in its upstream portfolio, which accounts for up to 40% of its global oil and gas output.

Both Chevron and TotalEnergies have reportedly declined to comment.