Galp Energia Announces Massive 10 Billion Barrel Oil Discovery Offshore Namibia

Galp Energia, a Portuguese oil company, has announced a potentially transformative oil discovery in the Mopane field offshore Namibia. The company estimates that the Mopane complex alone contains at least 10 billion barrels of oil equivalent, positioning it as one of the largest offshore finds in recent years.

The discovery was made after the completion of the first exploration phase, which revealed promising results from two wells, Mopane-1X and Mopane-2X. The wells encountered significant light oil columns in high-quality reservoir sands, with the reservoir logs confirming good porosities, high pressures, and high permeabilities in large hydrocarbon columns. Fluid samples indicated very low oil viscosity, minimal CO2, and no H2S concentrations.

Why this matters: The Mopane discovery has the potential to transform Namibia into a significant player in the global oil industry. With an estimated 10 billion barrels of oil equivalent, this find could significantly boost Namibia's economy and attract substantial investment from international oil companies.

During the well tests, the flows reached the maximum allowed limits of 14,000 barrels of oil equivalent per day, suggesting that Mopane might be an important commercial discovery. Galp, the operator with an 80% stake in the Petroleum Exploration Licence 83 (PEL 83) covering the Mopane field, plans to further explore, appraise, and develop the wider Mopane complex.

The Mopane field is located in the Orange Basin, where other major oil and gas companies like Shell and TotalEnergies have made similar discoveries in recent years. These finds have turned Namibia into a hotspot for exploration in Africa, with the country now eyeing an entry into the OPEC oil producers' organization ahead of its planned start of oil production in 2030.

Galp is reportedly seeking to sell half of its 80% stake in the PEL 83 block, likely to a major international energy company. This move could raise several billion dollars for Galp and bring in a partner with the expertise and resources to help develop the Mopane field.

In a statement, Galp CEO Andy Brown expressed his excitement about the discovery, saying, "The well results confirm the world-class potential of the Mopane prospect and demonstrate Galp's outstanding exploration track record. We are committed to working with our partners and the Namibian authorities to rapidly progress the development of this remarkable discovery."

Key Takeaways

• Galp Energia discovers 10 billion barrels of oil equivalent in Mopane field, Namibia.
• Mopane could transform Namibia into a significant player in the global oil industry.
• Well tests indicate Mopane may be a commercially viable discovery.
• Galp plans to further explore, appraise, and develop the Mopane complex.
• Galp seeks to sell half of its 80% stake in the Mopane field to a major energy company.