TotalEnergies has signed a deal to increase its position in two operated blocks offshore Namibia, adding to its share in the Venus light oil discovery as it moves toward development.
The company agreed to acquire from Impact Oil and Gas Namibia (Pty) Ltd. an additional 10.5% participating interest in Block 2913B and an additional 9.39% participating interest in Block 2912, TotalEnergies said in a release Jan. 10.
After completion of these deals, which will be subject to customary third-party approvals from the Namibian authorities and joint venture parties, TotalEnergies would own a 45.25% interest in Block 2913B containing the Venus discovery, up from its current 40%, as well as a 42.5% interest in Block 2912. Impact will retain a 9.5% interest in each license.
“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,” said Patrick Pouyanné, chairman and chief executive officer at TotalEnergies.
The Venus discovery lies in Orange basin, about 290 km off the coast of southern Namibia in about 3,000 m of water. The Venus-1X discovery well was drilled to a total depth of 6,296 m by the Maersk Voyager drillship and encountered a high-quality light oil-bearing sandstone reservoir of Lower Cretaceous age (OGJ Online, Feb. 22, 2023; Feb. 24, 2022).
In the release, TotalEnergies said it intends to share the additional participating interest with joint venture member QatarEnergy, but additional details were not provided. QatarEnergy holds a 30% interest in Block 2913B. NAMCOR holds the remaining 10%.
With the agreement, Impact will be reimbursed for past costs incurred for the interests through a $99 million payment at closing. Impact will also be carried for its remaining interests until Impact receives the first sales proceeds from hydrocarbon production, secured via a repayment mechanism based on Impact’s share of production.
