Sources: Exxon pulls out of race to purchase stake in Namibian oil block from Galp

Exxon Mobil pulled out of the race for half of Galp Energia’s stake in a major oil discovery in Namibia, which has drawn interest from other top energy companies.

Sources have previously stated that more than 12 oil companies, including Exxon Shell and Brazil's Petrobras, had expressed an interest in Galp’s 40% stake in Mopane's offshore discovery.

Galp also proposes that the buyer operates the field.

Exxon did not give any explanation for its withdrawal. Sources claim that other companies have engaged with Galp in the sale.

Exxon Galp has declined to comment.

According to some estimates, Mopane could be worth more than $10 billion and contain at least 10 billion equivalent barrels of oil or gas.

The sale follows a series of promising offshore oil discoveries made by Shell and TotalEnergies over the past few years that raised the prospect that South Africa could become a major oil-producing nation. (Sergio Goncalves contributed additional reporting; Jan Harvey edited the article)

(source: Reuters)