Exxon withdraws from race to buy stake in Namibia oil block from Galp, sources say

Reasons for withdrawal unclear
The offshore Mopane discovery could be valued at more than US$10 billion, according to some estimates.
Wendell Roelf, Ron Bousso and Sabrina Valle
  • 1 Week Ago - 2024-09-11 00:00:00
Exxon Mobil has pulled out of the race to buy half of Galp Energia's stake in a large oil discovery in Namibia that has attracted interest from top energy companies, sources with knowledge of the matter said.
More than 12 oil companies, including Exxon, Shell and Brazil's national oil company Petrobras, had expressed interest in Galp's 40% stake in the offshore Mopane discovery, sources had previously said.
Galp is also proposing the buyer operate the field.
The reasons for Exxon's withdrawal from the process were unclear. Other companies have continued to engage with Galp on the sale, the sources said.
Exxon and Galp declined to comment.
Mopane is estimated to hold at least 10 billion barrels of oil and gas equivalent and could be valued at more than US$10 billion, according to some estimates.
The sale process follows a string of promising offshore discoveries by Shell and TotalEnergies in recent years, which raised the prospect of the southern African country becoming a major oil producing nation.

Huge interest
In April, Galp launched the sale process for half of its 80% stake in Petroleum Exploration Licence 83 (PEL 83) as well as the right to become its operator.
Over a dozen companies, including Exxon Mobil at the time, Chevron, Shell, TotalEnergies, Brazil's Petrobras, Australia's Woodside Energy and US producer Apache Energy have signed agreements to access geological data of the field, four sources said.
Namibia, which has no oil and gas production, has attracted huge interest from international energy companies in recent years.
No company has decided to go ahead yet with a field development, although TotalEnergies said it expects to make a decision by the end of the year.
The strong interest in developing a new basin highlights the sector's expectations for oil and gas demand to remain strong for years even as the world seeks to reduce its dependency on fossil fuels.
- REUTERS