ExxonMobil, Shell Considering Bids for Stake in Namibia Oilfield

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(Offshore Technology, 22.May.2024)  — ExxonMobil and Shell are among the energy giants evaluating bids for a stake in Galp Energia’s oilfield offshore Namibia, reported Bloomberg, citing sources.  

TotalEnergies and Equinor are also interested in acquiring the 40% stake that Galp is looking to sell in the Mopane discovery, the sources added.  

The Mopane field, part of the Orange Basin within petroleum exploration licence 83 (PEL 83), is a region that has recently witnessed several significant oil and gas finds.  

Galp holds an 80% stake as the operator of PEL 83, with the National Petroleum Company of Namibia (NAMCOR) and Custos Energy each holding a 10% share. 

Based on Galp’s recent “in place” estimates, the Mopane complex contains approximately ten billion barrels of oil equivalent, potentially valuing the entire discovery at around $20bn (€18.44bn), the sources said.  

Galp, which is working with a financial adviser, has invited first-round bids for half of its 80% holding in the asset, with submissions due in mid-June, they added.  

The discussions are still in the preliminary stages, and it is possible that other bidders may emerge.  

The Portugal-based company may also choose to retain its stake if it cannot reach a satisfactory agreement with any of the interested parties. 

Galp, Exxon, Shell, TotalEnergies and Equinor representatives declined to comment on the report.  

PEL 83 is located immediately north of PEL 39, which includes Shell’s discoveries at Graff-1, La Rona-1 and Jonker-1.  

It is also adjacent to PEL 56, block 2913B, where TotalEnergies reported an oil find at the Venus-1 well. 

These discoveries are contributing to Namibia’s growing reputation as an exploration hotspot.  

While no fields have yet been approved for development, there is optimism that Namibia could experience an economic surge like Guyana’s recent boom.  

Namibian officials from the Ministry of Mines and Energy and NAMCOR have even visited Guyana to seek advice on oil developments. 

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