TotalEnergies expands stake in Namibian blocks

TotalEnergies has agreed to acquire an additional 10.5% participating interest in block 2913B and an additional 9.39% participating interest in block 2912 located offshore Namibia from Impact Oil and Gas, it said on January 10.

Both blocks are under the operational purview of TotalEnergies in Namibia. The French energy giant plans to share this added participating interest with its strategic partner and joint venture member, QatarEnergy.

Upon completion of these transactions, pending customary third-party approvals from Namibian authorities and joint venture parties, TotalEnergies will hold a 45.25% interest in block 2913B, which hosts the Venus discovery, and a 42.5% interest in block 2912. Impact will retain a 9.5% interest in each license. 

The Venus discovery is a light oil and associated gas field, located in the Orange Basin, off the coast of southern Namibia. 

As part of the agreement, Impact will be reimbursed for the past costs associated with these interests, facilitated through a $99mn payment upon closing. Additionally, Impact will benefit from being carried for its remaining interests until it receives the initial sales proceeds from hydrocarbon production. The repayment mechanism is structured based on Impact's share of production.