TotalEnergies has agreed to buy an additional stake in two offshore blocks in Namibia, where it made a significant discovery of light oil with associated gas in 2022.
TotalEnergies has agreed to buy an additional stake in two offshore blocks in Namibia, where it made a significant discovery of light oil with associated gas in 2022.
The French energy giant will acquire an additional 10.5% of block 2913B and 9.39% of block 2912 from Impact Oil and Gas Ltd., a privately held exploration company, according to a statement on Wednesday. TotalEnergies plans to share the acquired interest with QatarEnergy, its strategic partner and joint venture member on both blocks.
The deal will increase TotalEnergies' stake in the Venus discovery, which lies in block 2913B, to 45.25%, and its stake in block 2912 to 42.5%. Impact will retain 9.5% of each license.
Impact will receive $99 million at closing and will be carried for its remaining interests until it gets its first sales proceeds from hydrocarbon production. The transaction is subject to approvals from the Namibian authorities and joint venture parties.
"This transaction not only increases our share in the Venus discovery and remaining prospectivity on these blocks, but also represents a key step toward the development of Venus by consolidating the partnership and securing financing of all partners which will add value to all stakeholders," Chairman and Chief Executive Officer of TotalEnergies, Patrick Pouyanné, said in the statement.
TotalEnergies secured a large acreage position in both block 2913B and 2912, where it spudded the Venus-1 well in 2021 using the Maersk Voyer drillship. In 2022, the company confirmed the significant discovery at the Venus prospect, located in block 2913B in the Orange Basin.
Venus is believed to be one of Africa’s most promising offshore prospects and the French major has already confirmed the discovery would be developed.
Namibia, which imports most of its power, is hoping to develop its offshore gas potential and become a regional energy hub. The country has also attracted interest from other oil and gas companies, such as Shell and Galp Energia. The latter confirmed this week its own discovery in the Orange Basin.
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The French energy giant will acquire an additional 10.5% of block 2913B and 9.39% of block 2912 from Impact Oil and Gas Ltd., a privately held exploration company, according to a statement on Wednesday. TotalEnergies plans to share the acquired interest with QatarEnergy, its strategic partner and joint venture member on both blocks.
The deal will increase TotalEnergies' stake in the Venus discovery, which lies in block 2913B, to 45.25%, and its stake in block 2912 to 42.5%. Impact will retain 9.5% of each license.
Impact will receive $99 million at closing and will be carried for its remaining interests until it gets its first sales proceeds from hydrocarbon production. The transaction is subject to approvals from the Namibian authorities and joint venture parties.
"This transaction not only increases our share in the Venus discovery and remaining prospectivity on these blocks, but also represents a key step toward the development of Venus by consolidating the partnership and securing financing of all partners which will add value to all stakeholders," Chairman and Chief Executive Officer of TotalEnergies, Patrick Pouyanné, said in the statement.
TotalEnergies secured a large acreage position in both block 2913B and 2912, where it spudded the Venus-1 well in 2021 using the Maersk Voyer drillship. In 2022, the company confirmed the significant discovery at the Venus prospect, located in block 2913B in the Orange Basin.
Venus is believed to be one of Africa’s most promising offshore prospects and the French major has already confirmed the discovery would be developed.
Namibia, which imports most of its power, is hoping to develop its offshore gas potential and become a regional energy hub. The country has also attracted interest from other oil and gas companies, such as Shell and Galp Energia. The latter confirmed this week its own discovery in the Orange Basin.
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