France-based TotalEnergies has announced that it has agreed to increase its interests in two blocks that it operates in Namibia.
Under its agreement with Impact Oil and Gas Namibia (Pty) Ltd (Impact), TotalEnergies will purchase a further 9.39% stake in block 2912 and an interest of 10.5% in block 2913B. The company says it intends to share these interests with Qatar Energy, which is a joint venture and strategic partner of the company.
Assuming that joint venture partners and the Namibian authorities give the third-party approval needed to complete the deal, TotalEnergies, which also makes Total metalworking fluids, will have interests of 42.5% in block 2912 and 45.25% in block 2913B, which is where the Venus discover is located. Interests of 9.5% in each will continue to be held by Impact.
On closing the deal, some $99 million will be paid to Impact to reimburse it for expenses incurred for the purchased interests, and any remaining interests will be carried until it begins to receive proceeds from the sale of hydrocarbons from the blocks.
TotalEnergies’ Chief Executive Officer and Chairman, Patrick Pouyanné, said about the deal:
“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.”
TotalEnergies has been operating in Namibia for around 60 years now, with it currently employing 55 people in the country and being one of the biggest fuel distributors.
