French company signs agreement to explore oil reserves off SA’s West Coast
French energy company TotalEnergies is set to acquire a stake in a license for oil exploration off the west coast of South Africa.
TotalEnergies, together with Qatar’s state-owned oil company said they would buy a licence for oil and gas exploration off the coast of South Africa.
The partnership aims to develop the Orange Basin area in Namibia, with TotalEnergies securing a 33% stake in the offshore block 3B/4B.
This covers an area of approximately 18 000 square kilometres, with QatarEnergy holding a 24% stake. The deal’s financial details remain undisclosed.
The existing project owners include Africa Oil, Azinam (owned by Canada-listed Eco Atlantic), and Ricocure.
TotalEnergies and QatarEnergy have a history of collaboration in exploration and production ventures in Namibia, Guyana, and Kenya.
OIL EXPLORATION IN ORANGE BASIN
Block 3B/4B, located in South Africa’s Orange Basin, positions itself just south of major discoveries by Galp, Shell, and TotalEnergies in neighboring Namibia.
“Following the Venus success in Namibia, TotalEnergies is continuing to progress its exploration effort in the Orange Basin,” Kevin McLachlan, Senior Vice-President Exploration of TotalEnergies told Reuters.
NEW GLOBAL HOTSPOT FOR SURVEYS
Namibia, despite lacking current oil and gas production, has become a global hotspot for exploration, driven by discoveries in deep water from companies like Shell, TotalEnergies, and Galp.
“TotalEnergies are the best partner one could have, they know the Orange Basin better than anyone else, they have a drilling rig in the area, and they are a great operator with a strong balance sheet,” says Eco Atlantic CEO Gil Holzman.
The Orange Basin is mostly unexplored, with dozens of legacy wells drilled in shallow shelf waters along the South African coastline. “Legacy wells” are oil or gas wells that were drilled by companies in the past.
“South Africa’s side of the Orange Basin resembles those of Namibia, it is highly prospective with at least two prospects in the northern region of the basin potentially containing millions of barrels of oil and associated gas,” added Jonathan Salomo, lead geologist for the west coast at the Petroleum Agency of South Africa.
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