Sources say that Total and Chevron are leading the race to purchase Galp's Namibian oil discovery.

Mopane is estimated to contain at least 10 billion barrels oil

Chevron and Total fields are near Mopane

By America Hernandez and Wendell Roelf

LISBON/PARIS/CAPE TOWN - Four sources have confirmed that TotalEnergies, Chevron and other oil majors are the frontrunners for a 40% stake in Galp Mopane's Namibian discovery. After a series of high-profile oil discoveries, oil companies are flocking to Namibia. The country has no hydrocarbons and could be a top-15 producer in the next decade. Mopane's estimated resources are at least 10 billion bbls. Galp hopes to announce the winner by year end.

TotalEnergies & Chevron have declined to comment.

The negotiations regarding Namibia are moving forward with a list of preferred bidders that is strongly aligned to Mopane, a Galp Press Officer said. He declined to identify the companies.

Exxon, Shell, and Brazil's national oil firm Petrobras, as well as more than 12 other oil companies, had expressed an interest in Mopane. However, Exxon retracted its bid in June, and Petrobras claimed that Total had outbid them.

Tight Race Between Majors

Shell, for example, has written down many of its discoveries in Namibia as being uncommercial.

Both Total and Chevron have oilfield stakes in Mopane.

Africa has contributed between 25 and 40 percent of Total's oil & gas in the last two decades. Namibia is a priority for the company, while Mozambique and Uganda are facing financial and security challenges.

Total has already built a 150,000-barrel-per-day project in Namibia, close to Mopane. It is called Venus. Total has stated that the high gas content of this oil makes extraction difficult and expensive. It plans to make a final decision on investment next year.

Chevron wants to revive its frontier exploration. Kevin McLachlan was formerly employed by Total and has been hired as Vice President of Exploration for the U.S.-based company.

Chevron did not find any commercial reserves in Namibia's Orange Basin after drilling a deep well this year, but CEO Mike Wirth stated that it was still valuable information for future drilling.

(source: Reuters)