TotalEnergies and Chevron have become the leading contenders in the auction for a 40% operating stake in Galp’s Mopane oil discovery in Namibia, four sources told Reuters.
Oil companies have increasingly turned their attention to Namibia, despite its lack of existing hydrocarbon production, after a wave of major discoveries suggested the country could rank among the world’s top 15 oil producers within the next decade.
Mopane is estimated to hold at least 10 billion barrels of resources, and Galp aims to select a winning bidder before the end of the year.
Both TotalEnergies and Chevron declined to comment. A Galp press officer said, “Negotiations regarding Namibia are progressing with a shortlist of preferred bidders strongly aligned with Mopane,” without identifying the companies involved.
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More than 12 oil companies, including Exxon, Shell and Brazil’s state-owned Petrobras, initially expressed interest in the asset. Exxon withdrew in June, while Petrobras said it had been outbid by Total.
Namibia’s geology has posed challenges for several major companies. Shell wrote down its discoveries in the country as uncommercial. TotalEnergies and Chevron, however, both hold oilfield stakes near the Mopane block.
Africa has accounted for 25% to 40% of TotalEnergies’ oil and gas output over the past two decades, and the company views Namibia as a promising growth area while its projects in Mozambique and Uganda face financial and security issues.
TotalEnergies already leads a 150,000 barrel-per-day development in Namibia called Venus, located near Mopane, though the company has said the field’s high gas content makes oil extraction more complex and costly. It hopes to reach a final investment decision next year.
Chevron is looking to reinvigorate its frontier exploration strategy. The company recently hired Kevin McLachlan, formerly with TotalEnergies, as its vice president of exploration.
Although Chevron did not find commercial reserves when it drilled in Namibia’s Orange Basin this year, CEO Mike Wirth said the well still provided valuable data to inform future drilling campaigns.
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