TotalEnergies has emerged as the operator of Galp Energia’s flagship offshore oil discovery in Namibia after securing a large stake in the asset.
TotalEnergies agreed on Tuesday to acquire a 40% operating stake in the Mopane oil discovery located in Namibia’s Orange Basin.
The agreement was disclosed by Galp Energia in a regulatory filing.
The Mopane discovery, made by Galp in 2024, has quickly positioned Namibia as a new frontier for deep offshore oil.
Estimates suggest the Mopane complex could hold up to 10 billion barrels of oil equivalent, placing it among the largest discoveries of the past decade if confirmed.
“This agreement positions TotalEnergies as the operator of the two largest oil discoveries in Namibia and paves the way for the development of a major production hub,” the French oil major said in a press release.
The company added that Mopane complements its Venus discovery and provides “strong potential for value creation through shared infrastructure and technical expertise.”
Namibia’s Orange Basin has gained global attention following major finds by TotalEnergies and Shell in 2022.
Since then, exploration activity has accelerated. Results have been mixed. Shell later wrote off about $400 million from unsuccessful wells, while Chevron and the BP and Eni backed Azule Energy entered nearby blocks in search of new discoveries.
Mopane has stood out due to its size and early results, making it one of the most contested offshore assets in recent years.
Why Galp is selling off its stake
Galp is among Europe’s smaller oil explorers, with a market value of about €12.9 billion.
Developing a resource of Mopane’s scale would require large capital commitments over several years.
By selling part of the asset, Galp reduces financial pressure while keeping significant exposure to its upside.
The company said it plans to retain a 40% interest in Mopane, allowing it to remain a core partner while limiting risk.
Who were the major contenders
Interest in the Mopane stake was strong from the early stages of the process. Several global oil majors saw the discovery as a rare chance to secure early exposure to a potentially giant offshore oil province.
The Orange Basin is still largely undeveloped, which adds both risk and long term upside.
Chevron and Shell were the most frequently mentioned contenders. Chevron has been rebuilding its African offshore portfolio and viewed Namibia as a strategic entry point.
Shell, already active in the basin, was seen as a natural suitor despite past setbacks from dry wells.
Sources familiar with the process said negotiations moved quickly as Galp sought an experienced operator with technical depth and balance sheet strength.
This narrowed the field to firms already active in Namibia’s deepwater space.
By late stages, TotalEnergies and Chevron emerged as front runners.
TotalEnergies’ existing operatorship of the Venus discovery ultimately strengthened its position and tipped the deal in its favour.
TotalEnergies expanding its footprint in Namibia’s offshore
On its part, TotalEnergies has steadily built a dominant position in Namibia’s offshore since its Venus discovery in 2022.
That find changed perceptions of the country’s oil potential and placed the firm at the centre of the basin’s development story.
By acquiring Mopane operatorship, TotalEnergies strengthens its control over two of the basin’s most significant discoveries. This positions the company to influence infrastructure planning, production timelines and export strategies.
The proximity of Mopane to Venus creates potential operational synergies. Shared facilities, coordinated drilling plans and joint development concepts could improve project economics.
The move also fits TotalEnergies’ broader strategy of focusing on fewer but high impact assets. Namibia now sits alongside Guyana and Brazil as one of its priority offshore growth regions.
What next for Galp and TotalEnergies in Namibia’s offshore
The transaction is expected to be finalised in 2026, subject to regulatory approvals and partner consent. Until then, both firms will continue technical and geological work on the Mopane block.
Appraisal drilling will be critical in confirming the scale and quality of the resource. These results will guide decisions on development concepts and timelines.
For Galp, the focus shifts to portfolio balance. Retaining a 40% stake keeps the company exposed to a potentially world class asset without overstretching its capital capacity.
For TotalEnergies, the next phase is about consolidation and execution. Leading two major discoveries in the same basin places the company at the centre of Namibia’s push toward becoming a future offshore oil producer.
