TotalEnergies has acquired an operating stake in a South African oil block, building on its successful discoveries in Namibia.
The oil giant will hold a 33% stake in Block 3B/4B, which is southeast of TotalEnergies Namibian finds.
According to a press release by Eco Atlantic and Gas, which is part owner of the block in a joint venture, under the terms of the agreement, Africa Oil is set to receive staged payments totalling N$191 million (US$10 million), contingent upon meeting specific milestones.
A sum of N$63.03 million (US$3.3 million) is set to be paid upon completion, with the remainder to be distributed in two subsequent payments, subject to the fulfillment of key operational and regulatory criteria.
Africa Oil currently holds a 26.25% interest in Block 3B/4B through Africa Oil SA Corp. (AOSAC), Eco maintains a 20% interest, while Ricocure holds a 53.75% interest in the block.
Upon the completion of the deal, provided that standard conditions are met, Africa Oil will maintain a 17% stake. The rest of the ownership in Block 3B/4B will consist of 33% owned by TotalEnergies, 24% owned by QatarEnergy, 19.75% owned by Ricocure, and 6.25% owned by Eco Atlantic Oil and Gas.
Co-founder and Chief Executive Officer of Eco Atlantic, Gil Holzman said Block 3B/4B occupies a highly promising location for offshore oil and gas exploration and development worldwide.
He further emphasised the significance of the decision made by the two major energy companies to invest in this license, noting their extensive knowledge of the Orange basin, particularly demonstrated by their recent Venus large light oil discovery just north of the basin in Namibia.
“I would like to thank our partners at Africa Oil and Ricocure for their cooperation and jointly negotiating this farm-out agreement. We now look forward to working closely with the government of South Africa and our new partners on the exploration license to prepare first drilling,” he said.
Africa Oil’s unit, Africa Oil SA Corp, signed the agreement with TotalEnergies EP South Africa and QatarEnergy International. Africa Oil, in collaboration with its partners Eco (Atlantic) Oil & Gas Limited and Ricocure (Proprietary) Ltd, facilitated this deal through their respective subsidiaries.
