Portuguese oil and gas company Galp has announced the discovery of light oil at the Mopane-1X well offshore Namibia, bringing the total number of oil and gas discoveries to six since 2022.
Namibia has reached another milestone in its exploration journey, with Portuguese multinational energy corporation Galp announcing the discovery of light oil at the Mopane-1X exploration project – located in Petroleum Exploration License (PEL) 83 in the Orange Basin. Representing Namibia’s sixth commercial oil and gas discovery – following hydrocarbon discoveries made by TotalEnergies in PEL 56 and Shell in PEL 39 – the Galp discovery further elevates Namibia’s status as a frontier oil and gas market.
Galp reports that the discovery, made in reservoir-bearing sands of high quality, prompts the company to initiate an assessment of the reserves’ commercial viability through a planned drill stem test in the coming weeks. Recognizing the immense potential of Mopane-1X and Namibia’s Orange Basin for world-class discoveries, Galp and its partners – Namibia’s national oil company (NOC) NAMCOR and Custos Energy – are extending their drilling campaign with upcoming activities in the Mopane-2X well.
In light of this, the African Energy Chamber (AEC), as the voice of the African energy sector, has congratulated Galp and its partners for the discovery and explored what this new discovery means for Namibia and Africa at large.
On the onset, this achievement represents a substantial stride in positioning Namibia as a major energy player in Africa and on the global stage, aligning with recent successes in the country’s upstream sector.
The Chamber believes that the discovery is a massive milestone for Namibia, Galp, NAMCOR and its partners on PEL 83. In addition to fortifying local and regional energy security, the AEC foresees Galp’s discovery and Namibia’s burgeoning oil and gas industry playing a pivotal role in enhancing the country’s economic strength and gross domestic product growth. This will be achieved through bolstering energy market resilience, creating job opportunities, and expanding export revenue. Notably, with approximately 45% of the Namibia’s population currently lacking access to electricity, discoveries like Galp’s will be instrumental in realizing the government’s objective of universal energy access by 2040 while ensuring the region has access to affordable energy.
“This is an example of an African country, the ministry and the NOC working hand-in-hand to enable explorers. These discoveries do not just happen because of the geology itself, but credit should be given to the hard work that has been put in by the Namibian government through its ministry and NOC in constantly and consistently keeping a stable environment, encouraging companies, listening to investors, and giving investors the confidence to pour in money and get massive discoveries. Namibia’s example should be a lesson to many African states when it comes to exploration,” stated NJ Ayuk, the Executive Chairman of the AEC.
In addition, AEC notes that the discovery of light oil at Mopane-1X further demonstrates the commercial potential of offshore oil and gas in Africa. With six discoveries made in less than two years, Namibia is a testament to the role and future oil and gas plays in Africa. The AEC is optimistic about Namibia’s hydrocarbon future and urges exploration companies and government to work together in navigating the legal, environmental and investment requirements to fast-track the development of these critical resources.
“We stand with Namibia in its endeavour to explore and exploit oil and gas resources to address energy security issues and maximize industrialization. Namibia’s oil and gas resources will be key to expanding economic growth, driving diversification and advancing socioeconomic development, both in Namibia and across the southern African region,” concluded Ayuk.
GREAT SHARE LEAP FOR GALP
Subsequent to the discovery, Galp Energia’s oil discovery has triggered a 9.2% jump in its stock price which hit €15.14 ($16.56) on the Lisbon bourse last week – the highest it has been for nearly four years – and was just shy of this level at the time of republishing.
The operator did not reveal a resource size, but an indication of what investors think can be gleaned from the fact that Galp’s market capitalisation has risen by almost €800 million to hit about €10.7 billion.
The block partners, which include Namibian player Custos Energy, are set to continue the analysis of the acquired data and carry out a drill stem test in the coming weeks.
Mopane-1X drilling operations will proceed to explore deeper targets within the block and on completion of these operations, the Hercules semi-submersible rig will relocate to the Mopane-2X site to further evaluate the extent of the discovery.
Shiwana Ndeunyema, interim managing director of Namcor, said: “This is an amazing time for Namibia and Namcor. The Mopane-1X discovery is not just a significant achievement for our organisation but also a beacon of hope for the entire nation’s economic future.
“We are immensely pleased with these results and excited about the potential opportunities this opens up for our country.”