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[barolo19]

AfrOil: Petrobras to bid on 40% stake in Galp’s Mopane oil prospect offshore Namibia

August 11, 2024 at 09:46 pm EDT

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Brazil’s state-run oil and gas company Petrobras has made a non-binding offer to purchase a major stake in Portuguese major Galp Energia’s oil and gas discovery offshore Namibia in the highly prospective Orange Basin.

Petrobras may include at least one partner in its bid for a 40% stake in Galp’s Mopane oil discovery. However, the exact proportion of the stake Petrobras aims to acquire has not been disclosed, Offshore Technology reported on August 5.

According to two sources familiar with the matter, Petrobras will not pursue the entire 40% stake on its own. “It is a competitive process in a sought-after area, with potential to be confirmed. The natural thing in a bid like that is to dilute the risk with partners,” one source was quoted as saying.

Petrobras is the latest energy multinational to seek exposure to the Orange Basin in the wake of significant recent discoveries. This strategic move aligns with the company’s aim to expand its reserves amidst challenges with getting environmental licences to explore new areas in Brazil, as reported by Reuters.

If you would like to read more about the key events shaping the African oil and gas sector, then please click here for NewsBase's AfrOil Monitor.

[Wingafy]

Hmmm...no news of the big dawgs coming to chew on the bone. Only Petrobras mentioned in any news releases. Pity,  GLTA

[ExplodeTheBank]

They're at the table, dont ya worry! But it's always delicate to be the last one to take charge, so they're have insigt what the others bring to the table, it's simply easier to negotiate, when you know all the terms. It's like playing UNO, where u have all the good cards at the last turn 5 cards up, reverse, and slam bam, done deal. 

[capconstrained]

If Galp doesn't like the bids, it will slow play their hand b/c they're holding a pair of aces.  The winter drilling program will likely up the OOIP for Mopane to 12-14bn range.  The question is will the bidders be willing to pay for what prospects exist in the north of the block.  Imo, they will only pay for Mopane.

[MrMoMnyMgr1995]

Wing... In the most recent articles detailing Petrobras' intentions, the 2 biggest quotes for me are... "Assuming an oil recovery factor of 25% of the block's oil reserves, the 40% stake in Mopane could cost around $4 billion, BTG Pactual analysts estimated in a note last week" "It's a competitive process in a sought-after area"  

[ExplodeTheBank]

It's not gonna be nice to hear 40-50% recovery, by those who really understands it..... More to come :)

[Theonewhostocks]

It's strange, because one would think Petrobras would understand it better than most, so now it's me who is wondering if I even understand it. Everything I've read, and everything I've observed up until now would lead me to believe there's far more than 2.5 billion recoverable barrels there. It just seems so low of an estimate. Curious to see how this pans out, and who looks a

[geomanx02]

Think the potential buyers will low ball OOIP and EUR numbers because there is insufficient data to support the numbers being put out by Galp.  Not saying Galp is wrong....but buyers will see it differently. Examining the well results, only AVO 1 has been found in both wells....AVO 2 was encountered in the Mopane #1 well but not the Mopane #2 well.  Likewise, AVO #3 and AVO #4 were

[farrell90]

"Petrobras will not pursue the entire 40% stake on its own. “It is a competitive process in a sought-after area, with potential to be confirmed. The natural thing in a bid like that is to dilute the risk with partners,” one source was quoted as saying." The above sentence sums up the current situation. Many companies want into PEL83 ...but it is a "competetive process". All