TotalEnergies increases interest in offshore blocks in Namibia

TotalEnergies has signed an agreement 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, both operated by TotalEnergies in Namibia.

TotalEnergies said it planned to share this additional participating interest with its strategic partner and joint venture member QatarEnergy.

After completion of these transactions, 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, and a 42.5% interest in block 2912. Impact will retain a 9.5% interest in each license.

As per this agreement, Impact will be reimbursed for the past costs incurred for these 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.

“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.

TotalEnergies operates two offshore exploration licenses in the Orange basin: Blocks 2912 and 2913B. TotalEnergies is also the 4th largest fuel distributor in the country, with 40 service stations.