TotalEnergies, Galp agree to provisional swap arrangements for Mopane & Venus projects offshore Namibia

TotalEnergies and Galp Energia have agreed to exchange partial interests in three exploration licenses offshore Namibia that could accelerate two deepwater development projects.

Under the proposal, which remains subject to ratification by the Namibian authorities and other partners:

• TotalEnergies would acquire from Galp a 40% operated stake in PEL83, containing the giant Mopane discovery;
• Galp would acquire from TotalEnergies a 10% stake in PEL56, containing the Venus discovery, and 9.39% in PEL91.

In addition, TotalEnergies would carry 50% of Galp’s capex incurred to date for exploration and appraisal activities related to Mopane, to be repaid via 50% of Galp’s future cash flows from the project; and the same carry/percentage arrangement applies to Galp’s share of costs for the Venus development.

The two companies also agreed to a new three-well exploration and appraisal campaign over the next two years. The first well, planned in 2026, will be designed to de-risk volumes and help progress a development hub at Mopane.

At PEL56, TotalEnergies and its existing partners aim to be in position to take a potential FID on the Venus project next year, involving a 160,000 b/d FPSO.

Assuming clearance for the proposed transactions, TotalEnergies would hold:

• a 40% operated interest in PEL83 in partnership with Galp (40%), Namcor (10%) and Custos (10%);
• a 35.25% operated interest in PEL56 alongside QatarEnergy (35.25%), Galp (10%), Namcor (10%) and Impact (9.5%);
• a 33.085% operated interest in PEL91, with QatarEnergy (33.025%), Namcor (15%), Galp (9.39%) and Impact (9.5%).

After reaching an agreement with TotalEnergies to exchange a 40% participating interest in PEL 83, where the Mopane discovery lies, for a 10% interest in PEL 56, home to the Venus discovery, and a 9.4% interest in PEL 91.

Additionally, by obtaining a position in PEL 56 and PEL 91, Galp also secures exposure to the Venus project, for which TotalEnergies is maturing a development concept for a 160 kbpd FPSO, with final investment decision estimated for 2026.