(Oil Price) – TotalEnergies is expanding its exploration portfolio offshore Namibia with acreage north of a block where a major oil discovery has been made, as the supermajor looks to boost activity in the new global exploration hotspot.
TotalEnergies on Friday announced it had signed agreements to buy a 42.5% operated interest in the PEL104 exploration license offshore Namibia from Eight Offshore Investments Holdings and Maravilla Oil & Gas.
Upon completion of the transaction, TotalEnergies will be the operator of the license, which lies north of the PEL 83 license of the giant Mopane discovery. The French supermajor will own a 42.5% interest alongside Petrobras (42.5%), Namcor (10%), and Eight (5%).
In December, TotalEnergies signed an agreement with Galp that formalizes its operatorship over Namibia’s two largest offshore oil discoveries, Mopane and Venus, through a strategic asset swap that consolidates development control in the hands of the French major.
TotalEnergies will buy a 40% operated interest in PEL 83, the block containing the Mopane discovery that Galp had previously announced. In exchange, Galp will receive 10% in the PEL 56 block, home to the high-profile Venus discovery, and 9.39% in PEL 91.
“While progressing towards the development of Venus and Mopane discoveries, we are very pleased to expand our portfolio and continue exploring the prolific resources of Namibia, in order to unlock further value that will benefit the country and all stakeholders”, Nicolas Terraz, President Exploration & Production at TotalEnergies, said today.
Namibia has become the latest exploration hotspot, and several oil majors have flocked to drill wells, especially in the Orange Basin, where most oil and gas discoveries have been made to date.
Shell, TotalEnergies, BP, and Galp have all made large discoveries offshore Namibia.
Namibia hopes to become the next Guyana, but it lacks the infrastructure to fast-track the discoveries, which makes them more expensive and difficult to develop and monetize.
Namibia is weighing potential further incentives and financing options to offer to international majors preparing plans for oil production offshore the African country.
By Charles Kennedy for Oilprice.com
