TotalEnergies and its partner QatarEnergy have agreed to acquire stakes in the offshore South African concession, Block 3B/4B, from Africa Oil South Africa, Eco Atlantic Oil and Gas and Ricocure.

Currently, Eco Atlantic Oil and Gas through its fully owned subsidiary Azinam has a stake of 20% in the block located in the Orange Basin. Ricocure has a 53.75% stake while Africa Oil South Africa has an operating stake of 26.25%.

After the closing of the deal, TotalEnergies will have a participating stake of 33% in Block 3B/4B and will take over the operatorship role. QatarEnergy, on the other hand, will gain a stake of 24%.

The remaining ownership stakes will be retained by current licence holders, Africa Oil South Africa (17%), Ricocure (19.75%), and Azinam (6.25%).

Africa Oil South Africa will be eligible to proceeds of up to $46.8m from the deal. Eco Atlantic Oil and Gas stands to earn up to $32.1m while Ricocure’s share has not been disclosed.

Situated approximately 200km off South Africa`s western coastline, Block 3B/4B spans 17,581km2. The block is situated southeastward and aligns with several oil discoveries, including Venus and Graff.

Eco Atlantic Oil and Gas co-founder and CEO Gil Holzman said: “Block 3B/4B sits in one of the most prolific and exciting areas in the world for offshore oil and gas exploration and development.

“The decision by two of the largest energy companies globally to farm into this licence is strengthened by their significant understanding of the Orange basin, having made the Venus large light oil discovery just recently north of the basin in Namibia.”

Furthermore, Block 3B/4B is adjacent to the DWOB licence operated by TotalEnergies (50%). The other partners in DWOB are QatarEnergy (30%) and Sezigyn (20%).

TotalEnergies exploration senior vice-president Kevin McLachlan said: “Following the Venus success in Namibia, TotalEnergies is continuing to progress its Exploration effort in the Orange Basin, by entering this promising exploration licence in South Africa.”

Final approval from pertinent authorities is necessary for the transaction to close.