TotalEnergies will acquire a 10.5% interest in block 2913B and a 9.39% interest in block 2912 from Impact Oil and Gas
TotalEnergies will buy interests in blocks 2913B and 2912. (Credit: Grant Durr on Unsplash)
French energy company TotalEnergies is set to expand its footprint offshore Namibia through the acquisition of additional stakes in two offshore blocks from Impact Oil and Gas.
TotalEnergies has agreed with Impact to acquire a 10.5% participating interest in block 2913B and a 9.39% participating interest in block 2912, both operated by the company.
Under the terms of the agreement, Impact will receive a $99m payment as reimbursement for the past costs incurred for this interest, at closing.
Impact will receive a carry loan to support its remaining development, appraisal, and exploration costs until it receives the first proceeds from the sale of production.
The transaction is expected to be completed subject to customary third-party approvals from the Namibian authorities and joint venture parties.
Upon closing, TotalEnergies would have a 45.25% interest in block 2913B, and a 42.5% interest in block 2912, while Impact will retain a 9.5% interest in each license.
The French energy company intends to share the additional interest acquired in blocks 2913B and 2912, with its joint venture partner QatarEnergy.
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.”
Petroleum Exploration Licence 56 (PEL 56), also known as Block 2913B, is located offshore southern Namibia and covers around 8,215km² in water depths up to 3,000m.
Impact entered the licence as an operator in 2014 and has acquired 2D and 3D seismic data which defined the Venus prospect.
In 2017, TotalEnergies joined Impact and NAMCOR, bringing significant deep-water drilling expertise to the Joint Venture, and QatarEnergy joined the Joint Venture in 2019.
Block 2912 (PEL 91) is located offshore southern Namibia, adjacent to PEL 56 and covers around 7,884km² in water depths between 3,000 and 3,900m.
Impact joined TotalEnergies and NAMCOR on the licence in 2019, followed by QatarEnergy.
Impact CEO Siraj Ahmed said: “This is a pivotal transaction for Impact that paves the way for its transition from an exploration company to a hydrocarbon-producing company, through its participation in the development of the world-class Venus discovery.
“This transaction also enables Impact to participate in further significant exploration opportunities in the Blocks, offering the potential to significantly grow the existing discovered resource base.”