According to sources familiar with the matter, Exxon Mobil Corp. and Shell Plc are among energy giants evaluating bids for a stake in Galp Energia SGPS SA’s major oil field offshore Namibia.Other companies considering acquiring the 40% stake Galp is seeking to sell in the Mopane discovery include TotalEnergies SE and Equinor ASA among others.
Based on Galp’s recent “in place” estimates for 10 billion barrels of oil equivalent in the Mopane complex, the entire discovery could be worth around $20 billion, or potentially more, some of the people said. The Portuguese firm said in an April filing that the oil estimate is before drilling additional exploration and appraisal wells.
Galp, which is working with a financial adviser to sell half of its 80% holding in the asset, has called for first round bids in mid-June, according to the people. Shares of Galp were up 2.8% at 3:14 p.m. Tuesday in Lisbon, putting it on track for the biggest daily gain in about a month and giving the company a market value of €15.2 billion ($16.5 billion).
More bidders could emerge as deliberations are in early stage. However, the company could also decide to retain the stake if it cannot reach a final agreement with any of the parties, the people said.
Galp’s oil finds have added to discoveries drilled off the southwest African nation, with Shell and TotalEnergies also finding oil in the area in the past two years. While no fields have yet been given the green light for development, hopes are high in the country that an economic boom similar to that seen in Guyana could follow.
Officials from Namibia’s Ministry of Mines and Energy and state oil company Namcor visited Guyana late last year seeking advice about oil developments, while Patrick Pouyanne, chief executive officer of TotalEnergies, recently drew parallels between the two countries.
Request for comments from representatives for Galp, Shell, Exxon, Equinor and TotalEnergies were declined.
