Sintana Energy Inc (TSX-V:SEI, OTCQB:SEUSF) said that TotalEnergies will take over as operator of Namibia’s PEL 83 and acquire a 40% stake in the exploration block under a new agreement with Galp Energia, adding fresh momentum to activity in the country’s prolific Orange Basin.
Galp, which currently operates the licence and holds an 80% interest, announced the deal on its corporate website. Namibia’s NAMCOR holds 10% of the block, while Custos Energy, partly owned by Canada-listed Sintana, retains another 10%.
Sintana has an indirect 4.9% effective interest in PEL 83 through its 49% stake in Custos.
The companies also committed to an exploration and appraisal programme that will include at least three wells over the next two years as they continue to de-risk the block and shape plans for an initial development hub. The first potential well, the partners said, is being evaluated for 2026.
As part of the transaction, Galp and TotalEnergies agreed to a funding arrangement under which TotalEnergies will carry 50% of Galp’s investments for a first development at the Mopane discovery. Galp’s share of those costs will be repaid after first commercial oil through half of its future cash flows from the project. Custos will continue to benefit from an existing carry under the joint operating agreement.
The deal remains subject to approvals from Namibian authorities and joint-venture partners and is expected to close in 2026.
“The addition of TotalEnergies to the PEL 83 partnership as operator and significant participating interest owner speaks to the quality and scale of the opportunity, including most materially the discoveries at Mopane,” Sintana CEO Robert Bose said, adding that the expanded technical and financial resources “provide an opportunity to increase the value of our interests therein.”