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TotalEnergies is set to increase its stake in two prominent oil blocks off the coast of Namibia, in a significant development towards harnessing the enormous oil reserves of the Venus field. This move follows the discovery of these reserves by TotalEnergies and Shell Plc, beginning in 2022.
TotalEnergies has reached an agreement with Impact Oil and Gas Namibia Limited to acquire an additional 10.5% stake in offshore oil block 2913B and a 9.39% in block 2912. The transaction will bolster TotalEnergies’ stake in block 2913B, which houses the Venus oilfield discovery, to 45.25%, and 42.5% in block 2912. The agreement is designed to fortify TotalEnergies’ position in the region, particularly in the Venus discovery, potentially leading to an increase in reserves and future production capabilities.
The involvement of QatarEnergy as a strategic partner and joint venture member further highlights the project’s significance, indicating the potential for enhanced collaboration and resource sharing. The financial arrangement includes a USD 99 million payment to Impact at closing and a carrying agreement for its remaining interests until the proceeds of the first sale, ensuring financial flexibility for both companies.
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This acquisition represents a critical step towards the development of the Venus field, discovered in February 2022. TotalEnergies is also conducting drilling and seismic programs to further explore potential prospects in the area. The deal holds implications for Africa Oil, which sees it as a growth opportunity without exposing itself to large-scale project risks. The success of the transaction will hinge on the timely and cost-effective development of the Venus discovery. As TotalEnergies continues to cement its foothold in the Orange basin offshore Namibia, these strides align with broader trends in the global energy sector, where oil and gas companies persistently explore and develop new fields to satisfy the world’s energy demand.
