TotalEnergies (TTEF.PA) has strengthened its position in offshore Namibia by agreeing to an asset swap with Portugal’s Galp (GALP.LS), making the French company the operator of the major Mopane discovery, the firm announced on Tuesday.
Under the deal, Galp will receive a 10% stake in Total’s PEL56 licence, which holds the Venus discovery, and a 9.4% stake in the adjacent PEL91 licence, in exchange for its 40% interest in the PEL83 licence holding Mopane.
Total will cover half of Galp’s exploration and appraisal spending on Mopane, with repayment required from future field cash flow, Reuters reported. QatarEnergy remains the second-largest stakeholder in PEL56 and PEL91.
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TotalEnergies shares rose 0.6% following the announcement, while Galp shares fell more than 11%. RBC analysts described the deal as “more constructive for TotalEnergies than Galp, with no upfront cash payment likely to be seen as negative,” noting that full repayment of exploration spending could also disappoint.
They added that including Venus in the swap should help align partner interests but could imply “slightly higher capex for Galp over the coming years.”
Total and Galp plan to drill three wells at Mopane over the next two years, starting in 2026.
Last month, sources told Reuters that Total and Chevron (CVX.N) were front-runners for the Mopane stake.
“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 company said.
Galp Chair Paula Amorim added that the partnership would “significantly reduce the risks of Mopane, aligning a concrete path for the asset’s future.” The transaction is expected to be finalised in 2026.
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Image Credit: Business Day
