The farm-out agreement allows Africa Oil to continue participating in the Venus oil development project. (Source: Shutterstock)
TotalEnergies is acquiring additional interest in its operated 2913B and 2912 blocks offshore Namibia from Impact Oil & Gas Namibia, an investee company of Africa Oil Corp., the companies announced in a Jan. 10 press release.
Under the deal, TotalEnergies is acquiring an additional 10.5% participating interest in Block 2913B and an additional 9.39% participating interest in Block 2912.
The farm-out agreement allows Africa Oil to continue participating in the Venus oil development project “without stretching our balance sheet or exposing ourselves to the execution risk on a large-scale deepwater project,” Roger Tucker, CEO of Africa Oil, said in a press release.
The Venus project, in Block 2913B, is a light oil and associated gas field in the Orange Basin. Wood Mackenzie called the discovery the largest oil discovery in 2022, as the field is estimated to hold 3 to 5 Bboe.
After completing the transactions, TotalEnergies will continue to operate Block 2913B, which contains the Venus discovery, with 45.25% interest, and a 42.5% interest in Block 2912. Impact will retain 9.5% interest in each license.
In Block 2913B QatarEnergy holds 30% interest, and Namibian state oil company NAMCOR holds 10% interest. In Block 2912, QatarEnergy holds 28.3% interest, and NAMCOR holds 15% interest.
“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,” said Patrick Pouyanné, TotalEnergies’ CEO and chairman, said in a press release.
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