TotalEnergies and its partner QatarEnergy have announced plans to expand their oil exploration in South Africa.
The two inked an agreement with Africa Oil South Africa, Azinam, and Ricocure, the French supermajor to purchase participating interests in Block 3B/4B offshore South Africa. Upon completion of the transaction, TotalEnergies will hold a 33% participating interest in Block 3B/4B and assume operatorship, while QatarEnergy will hold a 24% stake. The remaining interests will be retained by the existing license holders – Africa Oil, Ricocure, and Azinam.
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Kevin McLachlan, Senior Vice-President Exploration of TotalEnergies, expressed optimism about the expansion, stating that it aligns with TotalEnergies’ commitment to advancing exploration efforts in the Orange Basin in Namibia. Saad Sherida Al-Kaabi, President and Chief Executive of QatarEnergy, also highlighted the significance of the move in bolstering their presence in the prolific Orange Basin.
Block 3B/4B sits on a 17,500 square kilometres area within the Orange Basin offshore the western coast of South Africa, with water depths ranging between 300 and 2,000 meters. Analysts view South Africa, along with Namibia, as one of TotalEnergies’ targeted frontier exploration areas offshore Africa.
TotalEnergies had previously made a noteworthy discovery of light oil with associated gas on the Venus prospect in the Orange Basin in Namibia. The company described Venus as a potentially “giant oil and gas discovery” during an investor presentation in September 2022. This success, coupled with the acquisition of Block 3B/4B, underscores TotalEnergies’ commitment to expanding its presence and exploration activities in the region.