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Petrobras' quote for Galp's Namibia prospect to consist of a minimum of one partner, sources say

Brazil's Petrobras will include a minimum of one partner in its quote for a. 40% stake in Galp Energia's Mopane oil prospect in. Namibia, 2 sources with knowledge of the matter told Reuters.

Recently, Petrobras' director of exploration and. production, Sylvia dos Anjos, informed Reuters that the state-run. company had actually made a non-binding offer for a stake that would make it. operator of the Mopane block off Namibia's coast. She did not. detail just how much of the 40% Petrobras was looking for.

The firm will not seek the complete 40% stake alone, the sources. said on condition of anonymity, among whom worried that the. bidding would not impact the company's payout of dividends.

It's a competitive process in an in-demand area, with. potential to be confirmed. The natural thing in a bid like that. is to dilute the threat with partners, said among the sources,. who did not state if Petrobras was looking for one partner or more, or. if it had actually currently found one.

Petrobras did not right away reply to an ask for. remark.

Petrobras' bid comes as it seeks to improve its reserves,. however has faced obstacles in acquiring environmental licenses to. move forward with exploration in Brazil.

The southwest African nation Namibia has actually come into the. spotlight as a brand-new oil and gas exploration hotspot following. a number of major discoveries recently along its coast.

Galp wishes to sell half of its 80% stake in the field, where. estimates show a minimum of 10 billion barrels of oil equivalent,. according to the firm.

Presuming an oil healing aspect of 25% of the block's oil. reserves, the 40% stake in Mopane might cost around $4 billion,. BTG Pactual analysts approximated in a note last week, warning that. the financial investment, in addition to possible purchases of two refineries. in Brazil, might raise threats for dividend payments by Petrobras.

(source: Reuters)