TotalEnergies ups stake in Venus discovery in Namibia

TotalEnergies has signed an agreement to purchase additional shares in the 2913B and 2912 offshore blocks in Namibia from Impact Oil and Gas Namibia, the French energy giant announced on Wednesday.

The move will see TotalEnergies take an additional 10.5% stake in the 2913B block and 9.39% stake in the 2912 block.

According to the press release, TotalEnergies will share its acquired stakes with its partner QatarEnergy.

Following the transaction, the energy giant will own a 45.25% stake in the 2913B block that contains the Venus discovery and 42.5% stake in the 2912 block, both located on the Orange basin.

Cost of the transaction is USD 99 million that will be paid upon closing the sale. It includes reimbursing the company for costs incurred.

The sale is subject to third-party approvals from partners and the Namibian government.

Previously TotalEnergies operated the 2913B block with a 40% share, with QatarEnergy holding a 30% stake, Impact Oil & Gas holding a 20% stake and National Petroleum Corporation of Namibia holding the remaining 10% stake.

“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 CEO of TotalEnergies.

In February 2022, TotalEnergies encountered 84 metres of net oil pay in high quality Lower Cretaceous reservoir at the Venus 1-X well, with pre-drill estimates indicated the find could contain around 1.5 billion barrels of oil.

Since then, the company has drilled several test wells in the region with positive results and is currently assessing the play for development.