Portugal's Galp is in advanced discussions to select partner for Mopane by this year

Galp, a Portuguese oil company, is in advanced discussions with several major oil companies to sell a 40 percent stake in the offshore Mopane field located in Namibia. The company expects to select a partner before the end of this year.

Galp wants to sell half its 80% stake in the Mopane field to a company who would operate it.

Bastos stated that "the interest is enormous", adding that Galp was looking for "a partner who accelerates the Mopane development as quickly as possible...to get the first oil".

Looking for other opportunities as well

It's important to know who the best partner is. He said that there are several potential partners in Namibia who are well advanced in their discussions. "We expect to have a partnership by the end the year," he added, without naming the companies.

He said that the first oil production from Mopane will not be seen until 2031 or 2032. In the meantime, Galp is looking for other opportunities, especially in Brazil and Sao Tome & Principe.

Galp has concentrated its oil and gas production in Brazil. It expects to produce 105,000-110,000 barrels equivalents per day in Brazil by 2025. This is through a joint venture of 70%-30% with Sinopec, which holds stakes in multiple projects.

The JV holds 20% of the Bacalhau Field in the Santos Basin. This field has recoverable reserves that exceed one billion barrels.

Bacalhau began oil production last week through a floating storage, production and offloading vessel that can pump up to 220.000 barrels of oil per day. Bastos stated that Bacalhau will add 400 million euro ($466million) in annual cash flow to Galp. "Sustaining it over the next 15-20 years."

(source: Reuters)