TotalEnergies Ups Stake in Namibia Oil As Discoveries Line Up

Offshore oil drilling in Namibia was boosted on Wednesday with French TotalEnergies’ move to increase its stake in the Venus discovery and the announcement of another discovery of light oil near Venus by a smaller explorer. 

On Wednesday, TotalEnergies said it had agreed to acquire an additional 10.5% interest in Namibia’s offshore block 2913B and an additional 9.39% interest in block 2912 from Impact Oil and Gas, which is majority owned by Africa Oil and Hosken Consolidated Investments Limited. 

“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”, Patrick Pouyanné, Chairman and Chief Executive Officer at TotalEnergies, said in a press release. 

The deal will give TotalEnergies a 45.25% interest in block 2913B, the site of the Venus discovery, and a total interest of 42.5% in the second block. TotalEnergies is the operator of the block. 

Over the past two years, TotalEnergies and Shell have made large discoveries offshore Namibia, prompting Wood Mackenzie to note that Shell’s Graff and TotalEnergies’ Venus, could be transformational for Namibia.  

Also on Wednesday, Portuguese Galp Energia confirmed another significant light oil discovery in the Mopen-1X well in block PEL83, sending the company’s shares soaring some 9% in early trading. Over the coming weeks, Galp will analyze the data and perform a drill stem test to assess the commerciality of the discovery.

The Galp discovery is in the Orange Basin, near Shell’s Graff and TotalEnergies’ Venus discoveries. 

Galp is the operator of the license, holding an 80% interest, while Namibia’s state-run oil company holds 10%, with a 10% share for Custos Investments. 

By Charles Kennedy for Oilprice.com

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