TotalEnergies and Galp enter asset swap deal in Namibia

Core Insights - TotalEnergies and Galp have agreed to swap stakes in three offshore oil licenses in Namibia, enhancing TotalEnergies' position as the operator of the Mopane and Venus discoveries [1][2] - The transaction is expected to be completed in 2026, pending approvals from Namibian authorities and joint venture partners [3] Stake Distribution - TotalEnergies will acquire a 40% operated interest in petroleum exploration license 88 (PEL83), which includes the Mopane oil discovery, and will hold a 35.25% operated interest in PEL56 and a 33.085% operated interest in PEL91 upon closing [3][4] - Galp will obtain a 10% participating interest in PEL56 and a 9.39% participating interest in PEL91 from TotalEnergies, while also holding a 40% interest in PEL83 [2][3] Financial Arrangements - TotalEnergies will carry 50% of Galp's capital expenditures for exploration and appraisal work on the Mopane discovery, which will be reimbursed through 50% of Galp's future cash flows generated by the project [2] Development Plans - TotalEnergies plans to develop the Venus discovery with a floating production, storage, and offloading unit capable of 160,000 barrels per day, aiming for a final investment decision in 2026 [6] - An exploration and appraisal campaign will be launched over the next two years, including three wells, with the first planned for 2026 [5] Strategic Goals - The collaboration aims to create a producing hub in Namibia, achieving synergies that will generate long-term value for Namibia and stakeholders [5] - TotalEnergies' chairman emphasized leveraging the company's operatorship track record to advance profitable and sustainable developments of both Venus and Mopane discoveries [4]