Petrobras bids for stake in Galp’s Namibian offshore oil discovery

Brazil’s state-run oil company Petrobras has made a non-binding offer for a share of Galp Energia’s newly discovered offshore oilfield in Namibia, reported Reuters.

This move could position Petrobras as the operator of the Mopane oil and gas field, which boasts an estimated 10 billion barrels of oil equivalent.

Speaking to Reuters, Petrobras exploration and production director Sylvia dos Anjos said: “We are the best deep-water operators. If [Galp] does not choose us, it is their loss.”

The potential acquisition comes as Petrobras faces challenges at home, with Anjos citing “unacceptable” difficulties in obtaining environmental licences for new explorations in Brazil.

Indigenous opposition and environmental regulatory hurdles have notably impeded the company’s efforts to drill offshore near the Amazon River’s mouth.

Additionally, a labour dispute has led to a slowdown in licencing by workers at the Brazilian Institute of Environment and Renewable Natural Resources.

The Mopane field, situated within the Orange Basin’s petroleum exploration licence (PEL) 83, has garnered attention from more than 12 companies, including industry giants such as ExxonMobil and Shell.

However, Anjos did not disclose whether Petrobras’s bid was for the entire 40% stake up for sale by Galp or a smaller portion.

Galp is the primary operator of PEL 83, holding an 80% stake, with the National Petroleum Company of Namibia (Namcor) and Custos Energy each owning an 10% stake.

The area is adjacent to other significant oil and gas 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.

These discoveries have contributed to Namibia’s burgeoning status as a promising location for oil exploration.

While no fields have yet been approved for development, there is optimism that Namibia could see an economic upswing similar to Guyana’s recent oil-driven growth.

Namibian officials from the Ministry of Mines and Energy and Namcor have even sought guidance from Guyana on managing oil developments.

Petrobras’ bid for a stake in Galp’s Namibian offshore oil discovery was originally created and published by Offshore Technology, a GlobalData owned brand. – YahooFinance