Brazilian state-run oil company Petrobras is set to include at least one partner in its bid for a 40% stake in Galp Energia’s Mopane oil discovery, reported Reuters, citing sources.
This strategic move comes as the company seeks to expand its reserves amidst challenges in advancing exploration in Brazil due to environmental licensing hurdles.
Petrobras director of exploration and production, Sylvia dos Anjos, announced last week the company’s non-binding offer to become the operator of the Mopane block off Namibia’s coast.
However, the exact proportion of the 40% stake Petrobras aims to acquire has not been disclosed.
According to two sources familiar with the matter, Petrobras will not pursue the entire 40% stake on its own.
One of the sources told the publication that the bidding process would not affect the company’s dividend payments.
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By GlobalData“It is a competitive process in a sought-after area, with potential to be confirmed. The natural thing in a bid like that is to dilute the risk with partners,” the source explained.
The Mopane field, situated within the Orange Basin’s petroleum exploration licence 83 (PEL 83), has attracted interest from more than 12 companies, including ExxonMobil and Shell.
Galp, the primary operator of PEL 83, is looking to divest half of its 80% stake in the field, which is estimated to contain at least ten billion barrels of oil equivalent.
Galp’s decision to sell comes as Namibia gains recognition as a new oil and gas exploration hotspot following significant discoveries along its coast.
The National Petroleum Company of Namibia and Custos Energy each hold a 10% interest in the field.
Adjacent to PEL 83 are other notable discoveries such as Shell’s finds at Graff-1, La Rona-1 and Jonker-1 in PEL 39, and TotalEnergies‘ Venus-1 well in PEL 56, block 2913B.
While no fields in Namibia have been approved for development yet, there is optimism in the industry that the country could experience an economic boom similar to Guyana’s recent oil-driven growth.
