TotalEnergies (France) has agreed to increase its stakes in Namibia's offshore oil blocks 2913B and 2912, buying respectively an extra 10.5% and a further 9.39% in them from Impact Oil and Gas Namibia Limited.

The French oil and gas supermajor, which operates both assets, will now own a 45.25% stake in block 2913B containing the Venus oilfield discovery, and a 42.5% stake in block 2912, it said on Wednesday (January 10).

“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 at TotalEnergies.

Impact, a privately-owned, Africa-focused, exploration company, said the farmout transaction includes a full carry, on Impact’s retained interest, for all joint venture costs, with no cap, through to receipt of the first sales proceeds from first oil production.

On completion of this transaction, Impact will hold a 9.5% interest in each block. The explorer will also be reimbursed in cash for its share of the past costs incurred on the Blocks, net to the farmout interests, which is estimated to be approximately $99mn.

“This is a pivotal transaction for Impact that paves the way for its transition from an exploration company to a hydrocarbon producing company, through its participation in the development of the world class Venus discovery,” commented Siraj Ahmed, CEO of Impact.

“This transaction also enables Impact to participate in further significant exploration opportunities in the Blocks, offering the potential to significantly grow the existing discovered resource base. We are delighted to be able to continue in this exciting journey with TotalEnergies.”

Block 2913B
Petroleum Exploration Licence 56, Block 2913B, is located offshore southern Namibia and covers approximately 8,215km² in water depths up to 3,000m. Impact entered the licence as Operator in 2014, acquiring 2D, then 3D seismic data which defined the Venus prospect. In 2017, Impact and NAMCOR were joined by TotalEnergies, bringing with it significant deep-water drilling expertise to the Joint Venture, and in 2019 QatarEnergy joined the Joint Venture.

Block 2912
Petroleum Exploration Licence 91, Block 2912, is located offshore southern Namibia, adjacent to, but outboard of, PEL 56 and covers approximately 7,884km² in water depths between 3,000 and 3,900m. Impact joined TotalEnergies and NAMCOR on the licence in 2019, as did QatarEnergy.