TotalEnergies has signed an agreement with Impact Oil and Gas Namibia to acquire an additional participating interest in two blocks being developed offshore Namibia, one of which contains the Venus discovery.
TotalEnergies will acquire additional 10.5% participating interest in block 2913B and an additional 9.39% participating interest in block 2912, both operated by the French energy major.
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, while TotalEnergies’ plans to share the additional participating interest with its strategic partner and joint venture member QatarEnergy.
According to the 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 it 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.
Block 2913B (PEL 56) and the Venus Discovery
Block 2913B contains the world class Venus light oil and associated gas field that was discovered by the Venus-1X well drilled in 2022, which encountered high-quality light oil-bearing sandstone reservoir.
This well was re-entered, side-tracked and tested in in third quarter 2023, achieving positive test results.
These results are being interpreted and incorporated into the development studies for the field.
Further appraisal of the Venus structure was undertaken with the drilling and testing of the Venus-1A appraisal well.
A third appraisal well on the Venus structure, Venus-2A, is currently being drilled by the Deepsea Mira rig, and a second rig, Tungsten Explorer, is currently drilling the Mangetti-1X exploration well, targeting a prospect located in the northern part of Block 2913B.
Mangetti-1X will then be deepened to appraise the northern area of the Venus structure.
In addition to the on-going drilling operations a 3D seismic acquisition program over the southern part of Block 2913B is currently under way. This program will cover an area where further follow-on prospectivity bas been identified from existing 2D seismic data sets. These include Damara and Damara South prospects.
Impact currently holds a 20% interest in this block. TotalEnergies, the operator, holds a 40% interest, QatarEnergy 30%, and NAMCOR, the Namibian state oil company, 10% interest. On the closing of the farmout agreement, Impact will hold a 9.5% interest in the block.