TotalEnergies (TTEF.PA) has taken a significant stride towards the development of the Venus oil discovery off the coast of Namibia. The energy giant announced on Wednesday that it has expanded its stake in Venus through a deal with Impact Oil and Gas, positioning itself for a more prominent role in the project.
In this strategic move, TotalEnergies has agreed to acquire an additional 10.5% interest in block 2913B and a 9.39% interest in block 2912 from Impact Oil and Gas, a company predominantly owned by Africa Oil (AOI.TO) and Hosken Consolidated Investments Limited.
TotalEnergies’ CEO, Patrick Pouyanne, hailed the transaction as a pivotal step towards Venus’ development, emphasising that it consolidates partnerships and secures financing for all stakeholders involved.
Namibia, a Southern African nation with no history of oil and gas production, has recently become a hotspot for energy companies. This newfound interest was ignited by discoveries made by TotalEnergies and Shell in the region.
Simultaneously, Portugal’s Galp Energia (GALP.LS) revealed a significant breakthrough by confirming the discovery of a substantial light oil column in high-quality reservoir sands in the Mopane-1X well within block PEL83, offshore Namibia.
Following the completion of the agreement with Impact Oil and Gas, TotalEnergies will hold a 45.25% interest in block 2913B, the site of the Venus discovery, and a 42.5% interest in block 2912. Impact will retain a 9.5% interest in each of the licenses.
TotalEnergies, as the operator of the blocks, has conducted several test wells in the area, all of which yielded positive results, spurring further assessment of its development potential.
Additionally, TotalEnergies intends to share the increased interest with its joint venture partner, QatarEnergy.
It’s important to note that the deal is contingent upon approvals from Namibian authorities and joint venture partners. As part of the agreement, TotalEnergies will disburse $99 million to Impact Oil and Gas to cover past investments in the blocks and will also provide a loan to facilitate future development.
This move by TotalEnergies underscores the growing importance of Namibia in the energy sector, as it cements its position as a key player in the nation’s burgeoning oil and gas industry.
