An auction is underway for a significant operating stake in Galp Energia's Mopane oil and gas complex offshore Namibia, with TotalEnergies and Chevron emerging as the front-runners, according to a Reuters report citing four sources.

Stake and Resource Details

The auction is for a 40% operating stake in the Mopane complex, which is located within Petroleum Exploration Licence 83 in the Orange basin. The asset is substantial, holding in-place resources estimated at approximately 10 billion barrels of oil equivalent. These resources are distributed across as many as 13 distinct reservoirs.

Competitive Landscape and Bidders

TotalEnergies and Chevron are considered to be in the leading positions to secure the stake. While both companies declined to comment on the commercial matter, a Galp spokesperson confirmed that negotiations are progressing with a shortlist of preferred bidders who are strongly aligned with the Mopane project's objectives. Galp has previously indicated its intention to fast-track the development of Mopane, which had led industry observers to view Petrobras as a prime contender, especially given its publicly stated bid and recognized ability to accelerate major projects.

Regional Context and Existing Interests

The bidders have significant pre-existing interests in the Namibian offshore region. TotalEnergies is the operator of the planned Venus oil project, also in the Namibian Orange basin, which is a major development targeting 160,000 barrels per day and is expected to receive final investment sanction in 2026. Chevron operates an exploration block directly north of the Venus discovery, where it has already drilled an unsuccessful exploration well, and also controls acreage in the Walvis basin further to the north.

Timeline

Galp Energia has stated that it expects to announce the winner of the auction by the end of 2025.