Full Breakdown
TotalEnergies Secures Operatorship of Namibia’s Mopane Oil Discovery
12/9/2025, 8:14:23 PM
Strategic Asset Swap with Galp
On December 9, 2025, TotalEnergies (TTEF.PA) announced a significant agreement with Portugal's Galp (GALP.LS) that positions TotalEnergies as the operator of the Mopane oil discovery offshore Namibia. Under this asset swap, TotalEnergies will acquire a 40% operated interest in Petroleum Exploration License (PEL) 83, which encompasses the Mopane project. In return, Galp will receive a 10% stake in TotalEnergies’ PEL 56, which includes the Venus discovery, and a 9.4% interest in PEL 91. This transaction is expected to enhance TotalEnergies' operational footprint in Namibia's burgeoning offshore oil sector.
Implications for Stakeholders
TotalEnergies will finance 50% of Galp's exploration and appraisal expenditures for Mopane, with repayment structured through future cash flows from the project. The deal is seen as more favorable for TotalEnergies, as analysts noted that the lack of an upfront cash payment for Galp may be perceived negatively. Following the announcement, Galp's shares fell by over 11%, reflecting investor disappointment regarding the transaction's structure. Conversely, TotalEnergies' shares experienced a modest increase of 0.6%.
Exploration Plans and Future Development
Both companies plan to initiate an exploration and appraisal campaign at Mopane, which includes drilling three wells over the next two years, starting in 2026. This campaign aims to further assess the resource potential and advance development planning for the field. The Mopane discovery is part of Namibia's Orange Basin, which has gained attention due to a series of significant oil discoveries in recent years, positioning it as a key area for international oil companies.
Official Statements & Responses
TotalEnergies emphasized that this agreement solidifies its role as the operator of Namibia's two largest offshore oil discoveries, Mopane and Venus, and is a step toward establishing a major production hub in the region. Patrick Pouyanné, Chairman and CEO of TotalEnergies, stated, “We are very happy to have been selected by Galp as their partner and operator for the prolific PEL83 license, including the Mopane discovery in Namibia.” He highlighted the potential for synergies that would create long-term value for both Namibia and stakeholders involved.
Criticism & Opposition
Despite the strategic advantages for TotalEnergies, the deal has faced criticism from analysts and investors who expected a more straightforward cash transaction rather than a stake swap. Antonio Pedro Fonseca, head of trading at Banco Invest, noted that the market anticipated a direct sale, which contributed to the decline in Galp's stock price. Analysts from JPMorgan Chase & Co. expressed that the deal's terms did not meet elevated market expectations regarding upfront cash and the depth of carry.
What's Next
The completion of the transaction is subject to customary approvals from Namibian authorities and joint venture partners, with finalization expected in 2026. Following this, TotalEnergies will operate PEL 83 alongside Galp, Namibia’s national oil company Namcor, and Custos Energy, while continuing to develop the Venus discovery in PEL 56.
