Energy company TotalEnergies and oil and natural gas company Galp have agreed to launch an exploration and appraisal campaign, including three wells over the next two years, with a first well planned in 2026, to further derisk resources and progress diligently toward the development of the Mopane discovery, in Namibia.

Additionally, under the terms of the agreement between the parties, TotalEnergies will acquire from Galp a 40% operated interest in PEL83, which includes the Mopane discovery.

TotalEnergies will carry 50% of Galp’s capital expenditures for the exploration and appraisal of the Mopane discovery and the first development on PEL83. The carry will be repaid through 50% of Galp’s future cash flows from the project.

Further, TotalEnergies, which is the operator of PEL56, remains fully committed to the development of the Venus discovery and is working to secure all conditions enabling a potential final investment decision in 2026.

Under the agreement, Galp will acquire, from TotalEnergies, a 10% participating interest in PEL56, which includes the Venus discovery, and a 9.39% participating interest in PEL91, the companies say.

“We are happy to have been selected by Galp as their partner and operator for the prolific PEL83 licence, including the Mopane discovery in Namibia,” says TotalEnergies chairperson and CEO Patrick Pouyanné.

The agreement recognises TotalEnergies' exploration and deepwater competencies, and the company will leverage its recognised operatorship record to progress towards profitable and sustainable developments of both the Venus and Mopane discoveries.

“By enabling the creation of a producing hub in Namibia, we aim to achieve synergies that will create long-term value for both Namibia and the stakeholders. We are eager to build further on our collaboration with the Namibian authorities in order to deliver both developments,” he says.

The transaction positions TotalEnergies as the operator of the two largest oil discoveries in Namibia and opens the way for the development of a major producing hub, generating long-term value for the country and partners.

Completion of the transaction is subject to customary third-party approvals from the Namibian authorities and joint venture parties, with completion expected to occur in 2026.

After completion of the transaction, TotalEnergies will own a 40% operated interest in PEL83 alongside Galp with 40%, Namcor with 10% and Custos with 10%.

Further, TotalEnergies will also own a 35.25% operated interest in PEL56 alongside QatarEnergy with 35.25%, Galp with 10%, Namcor with 10% and Impact with 9.5%; as well as a 33.085% operated interest in PEL91 alongside QatarEnergy with 33.025%, Namcor with 15%, Galp with 9.39% and Impact with 9.5%.