TotalEnergies and QatarEnergy to Acquire Stake in Offshore Oil and Gas Licence in South Africa

TotalEnergies and QatarEnergy have announced their joint acquisition of a stake in a licence for oil and gas exploration off the coast of South Africa. The French energy company will purchase a 33% stake in the offshore block 3B/4B, covering an area of approximately 18,000 km2, while QatarEnergy will hold a 24% stake. The remaining ownership will be retained by the existing project owners, including Africa Oil, Azinam (owned by Canada-listed Eco Atlantic), and Ricocure. The financial details of the deal were not disclosed.

The Orange Basin area, located in Namibia, has become a focal point for exploration activities. TotalEnergies and QatarEnergy have established partnerships for exploration and production in various locations, including Namibia, Guyana, and Kenya. Block 3B/4B is situated on South Africa’s side of the Orange Basin, adjacent to significant discoveries made by Galp, Shell, and TotalEnergies in Namibia.

TotalEnergies, building on the success of the Venus discovery in Namibia, aims to advance its exploration efforts in the Orange Basin. Namibia, despite having no existing oil and gas production, has gained attention as a global exploration hotspot, with notable deepwater discoveries by major energy players.

Eco Atlantic CEO Gil Holzman expressed confidence in the partnership, stating, “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.”

The Orange Basin remains largely unexplored, with historical wells drilled in shallow shelf waters along the South African coastline. The region’s prospects are considered highly promising, with at least two prospects in the northern part of the basin potentially holding significant reserves of oil and associated gas, according to Jonathan Salomo, the lead geologist for the West coast at the Petroleum Agency of South Africa.