TotalEnergies has expanded its presence in the Namibian offshore sector by acquiring additional stakes in two blocks from Impact Oil and Gas (Impact).
The French energy giant will increase its participating interest by 10.5% in block 2913B and 9.39% in block 2912.
TotalEnergies, the operator of both blocks, said it will share these interests with its partner QatarEnergy.
Upon completion of these transactions, TotalEnergies’ holdings will rise to 45.25% in block 2913B, which includes the Venus discovery, and 42.5% in block 2912.
Impact will maintain a 9.5% interest in each of the licences.
Under the terms of the agreement, Impact will receive a $99m (€90.2m) payment at closing, which will cover past costs associated with these interests.
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Furthermore, Impact will be carried for its remaining interests until it begins to receive sales proceeds from hydrocarbon production, with a repayment mechanism based on its share of production.
The deal is subject to receiving the required clearances from joint venture partners and Namibian Government agencies.
TotalEnergies chairman and CEO Patrick Pouyanné said: “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.”
TotalEnergies and its partners discovered light oil and associated gas in block 2913B in February 2022.
The light oil discovery was identified following the drilling of the Venus 1-X exploration well.
Following drilling to a depth of 6,296m, the exploration well encountered nearly 84m of net oil pay in the sandstone reservoir of the Lower Cretaceous age.