Africa Oil has completed the farm down of its interests in blocks 2912 and 2913B offshore Namibia, containing the Venus field, to TotalEnergies EP Namibia.
The farm down was conducted via Africa Oil’s investee company Impact Oil & Gas Limited, which has received a payment of $99 million, as reimbursement for its share of costs incurred on the blocks net to the farm down interests.
Impact has retained a 9.5% interest in each of the blocks and will benefit from a carry loan for all its remaining development, appraisal and exploration costs on the blocks from the effective date, until the date on which Impact receives the first sales proceeds from oil production on the blocks.
Block 2913B is located in Petroleum Exploration License (PEL) 56, offshore southern Namibia and covers approximately 8,215 km2 in water depths between 2,450 m and 3,250 m.
Following the completion of the farm down, Impact now holds a 9.5% interest in this block.
TotalEnergies, the operator, holds a 50.5% interest, QatarEnergy holds a 30.0% interest and NAMCOR, the Namibian state oil company, holds a 10.0% interest.
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 of Lower Cretaceous age.
The field has been appraised with the testing of the Venus-1X side-track well plus three additional appraisal wells that have also been flow tested. These wells are Venus-1A, Venus-2A, and Mangetti-1X.
Block 2912 is located in PEL 91, adjacent and to the west of block 2913B. It covers an area of approximately 7,884 km2 in water depths between 3,000 m and 3,950 m.
Following the completion of the farm down Impact now holds a 9.5% interest in this block, while TotalEnergies, the operator, holds a 47.2% interest, QatarEnergy holds a 28.3% stake and NAMCOR holds the remaining 15.0%.
Following the 2022 Venus-1X discovery well, four further exploration and appraisal wells have been drilled on the blocks to date. Of the five wells drilled, four have, successfully penetrated and tested the Venus field. As a result, planning is currently progressing for the first development area, with a development scheme expected to be finalized by the end of 2025.
During 2024, two additional 3D seismic acquisition programs were completed to facilitate further exploration over the southern and northern parts of the combined blocks. This has resulted in most of the licensed area now being covered by 3D seismic. This data is currently being processed and interpreted and will help further evaluate prospects and leads in the far northern and southern parts of the Blocks.
On October 20, 2024, the DeepSea Mira spud the Tamboti-1X well, targeting significant additional resource in the north of Block 2913B. Beyond Tambotti-1X, there are a number of prospects in the southern part of the Blocks that are currently being matured by the recent 3D seismic data and create an opportunity for follow-on potential high impact exploration wells, according to Africa Oil.
“The farm down allows Africa Oil to retain a funded interest in the Venus development project that is expected to add significant reserves and production to our portfolio. We also believe there is tremendous exploration upside on the Blocks starting with the recently spud Tamboti-1X well,” said Roger Tucker, Africa Oil President and CEO.