Brazil’s state-run oil giant, Petrobras, has expressed keen interest in acquiring a significant stake in Galp Energia’s substantial offshore oil discovery in Namibia.
Petrobras’ exploration and production director, Sylvia dos Anjos, revealed the company’s non-binding offer on Friday.
If successful, Petrobras would assume the role of operator for the Mopane oil and gas field, estimated to hold a staggering 10 billion barrels of oil equivalent.
Anjos, in her first interview since assuming her position last month, underscored Petrobras’ expertise in deepwater operations, asserting that Galp would be missing out if they opted for another partner.
The move comes amid growing challenges for Petrobras on the domestic front.
Anjos cited “unacceptable” hurdles in securing environmental permits for new exploration projects in Brazil as a primary factor driving the company’s overseas ambitions.
Indigenous groups and environmental regulators have staunchly opposed the company’s plans to drill in promising offshore areas near the Amazon River.
Moreover, a labor dispute at the environmental agency Ibama has led to a slowdown in licensing processes this year.
Despite these domestic setbacks, Petrobras remains committed to its home market.
“We want to work in Brazil, but if we are not welcome, we will go somewhere else, and we will maintain our production,” Anjos emphasized.
The race for a stake in Galp’s Namibian oil field is heating up, with over a dozen companies, including industry giants Exxon and Shell, vying for a 40% share.
While Petrobras has confirmed its interest, the exact percentage it seeks remains undisclosed.