Galp-TotalEnergies Swap: Mopane Operatorship for Venus Exposure

The Deal Structure

The December 2025 asset swap between Galp and TotalEnergies represents one of the most significant corporate transactions in Namibia's emerging oil sector. Announced in late 2025, the deal reshuffles ownership in two of Namibia's largest discoveries: the giant Mopane field and the Venus field heading toward FID in Q4 2026.

Why This Deal Makes Sense

For TotalEnergies: Operatorship and Scale

TotalEnergies gains operatorship of Mopane, which at 10+ billion barrels of oil equivalent, is potentially Namibia's largest discovery. Key advantages:

• • Control: As operator, TotalEnergies directs drilling decisions, timelines, and development strategy
• • Integration: Can coordinate Mopane and Venus developments for infrastructure synergies
• • Scale: Combined Venus (5.1B barrels) + Mopane (10B+ barrels) = ~15B barrels under TotalEnergies operation
• • Expertise: TotalEnergies brings deepwater development experience from global projects

For Galp: Diversification and Capital Efficiency

Galp trades operatorship for diversification plus a valuable cost carry. Strategic benefits:

• • Risk Diversification: Gains exposure to Venus (different reservoir, different operator)
• • Capital Efficiency: 50% carry reduces Galp's upfront cash requirements significantly
• • Retained Upside: Keeps 40% of Mopane, still substantial participation
• • Focus: Allows Galp to focus capital on other global opportunities

The Mopane Discovery: 10+ Billion Barrels

Mopane is Namibia's largest discovered oil field, with estimates ranging from 10+ billion barrels of oil equivalent. Galp originally discovered Mopane and conducted extensive appraisal, confirming the field's massive potential.

Post-Swap Ownership Structure (PEL 83)

• • TotalEnergies: 40% (operator)
• • Galp: 40% (non-operated, 50% carried)
• • NAMCOR: 10% (Namibia national oil company)
• • Custos: 10%

2026 Drilling Program: 3+ Wells Planned

TotalEnergies and Galp plan to drill at least 3 wells in Mopane over the next two years starting in 2026. The first potential well is currently under assessment for 2026 drilling.

Drilling Objectives

• • Appraisal: Further delineate the Mopane structure and confirm resource size
• • Reservoir Quality: Test production rates and fluid characteristics
• • Development Planning: Gather data to design field development concept
• • FID Preparation: De-risk project for potential FID decision (likely 2027-2028)

Strategic Synergies: Mopane + Venus

With TotalEnergies now operating both Venus (5.1B barrels) and Mopane (10B+ barrels), the company can pursue infrastructure synergies:

Potential Integration Opportunities

• • Shared FPSO: Larger vessel serving multiple fields reduces per-barrel costs
• • Coordinated Drilling: Single rig campaign across Venus and Mopane
• • Export Infrastructure: Shared offloading and shipping logistics
• • Supply Base: Common shore base and logistics support
• • Phased Development: Stagger FID decisions to optimize capital deployment

These synergies could significantly improve project economics for both fields. A coordinated development approach may allow TotalEnergies to achieve sub-$20/barrel production costs critical for FID decisions.

Deal Completion Timeline

The asset swap is expected to complete during 2026, subject to:

• • Regulatory Approvals: Namibian government must approve ownership change
• • Joint Venture Partner Consent: NAMCOR and Custos must approve TotalEnergies operatorship
• • Internal Approvals: Both companies' boards and shareholders must ratify
• • Legal Documentation: Final agreements, carry arrangements, operatorship transfer

Assuming no significant delays, the transaction should close by mid-2026, allowing TotalEnergies to proceed with the planned 3-well drilling program.

Market Reaction and Analysis

For Galp Shareholders

The deal was generally well-received by Galp investors. Key positives:

• • Reduces capital intensity of Namibia program
• • Diversifies Namibia exposure across two major fields
• • Retains significant upside through 40% Mopane stake
• • Allows capital redeployment to Brazil and other opportunities

For TotalEnergies Shareholders

TotalEnergies gains operational control over Namibia's two largest discoveries:

• • Consolidates ~15B barrels under TotalEnergies operation
• • Provides flexibility to optimize development timing and infrastructure
• • Establishes TotalEnergies as dominant Namibia offshore operator
• • Carries Galp costs in exchange for enhanced control

Comparison: Pre-Swap vs Post-Swap Stakes

Investment Implications

The Galp-TotalEnergies swap has several implications for Namibia-focused investors:

Accelerated Development Timeline

TotalEnergies' operatorship of both Venus and Mopane likely accelerates overall development. A single operator can coordinate infrastructure, drilling, and FID timing more efficiently than separate operators.

De-Risking Through Integration

Shared infrastructure reduces per-field development costs, making marginal projects more economical. This could enable TotalEnergies to develop both fields commercially even if standalone economics were challenging.

Validating the Orange Basin

The deal confirms that major oil companies view Namibia's Orange Basin as a multi-decade, multi-billion barrel province worth long-term commitment. This is positive for other Namibia oil companies and exploration plays across neighboring blocks.

Bottom Line: A Win-Win Strategic Partnership

The December 2025 Galp-TotalEnergies asset swap represents sophisticated corporate strategy in Namibia's offshore sector. TotalEnergies gains operational control over 15+ billion barrels across Venus and Mopane, enabling infrastructure synergies and coordinated development. Galp diversifies exposure while reducing capital intensity through the 50% carry arrangement.

The 3-well 2026 drilling program at Mopane is the near-term catalyst to watch. Successful appraisal could lead to FID in 2027-2028, potentially making Mopane Namibia's second producing field after Venus. Deal completion is expected mid-2026, subject to regulatory approvals.

For investors, this deal validates Namibia's long-term potential and demonstrates how majors are optimizing their positions through strategic partnerships rather than competitive bidding. Both Galp and TotalEnergies emerge stronger from this swap—a rare true win-win in the oil sector.