TotalEnergies has signed, together with its partner QatarEnergy, an agreement to acquire participating interests in Block 3B/4B, offshore South Africa, from Africa Oil South Africa, Azinam, a wholly-owned subsidiary of Eco Atlantic Oil and Gas, and Ricocure. The agreement comes after TotalEnergies earlier this year increased its shareholding, in the Venus oil discovery offshore Namibia in a deal with Impact Oil and Gas. The oil major’s increased stake marked a significant step towards the development of the Venus discovery.
Following completion of TotalEnergies’ latest transaction, the oil major will hold a 33% participating interest in Block 3B/4B and assume operatorship, while QatarEnergy will hold a 24% interest. The remaining interests will be held by existing license holders, Africa Oil SA (17%), Ricocure (19.75%) and Azinam (6.25%).
The transaction is subject to final approvals from relevant authorities. Located within the prolific Orange basin, 200km off the western coast of South Africa, Block 3B/4B covers an area of 17 581 square kilometres. Block 3B/4B is adjacent to the DWOB license operated by TotalEnergies (50%) alongside QatarEnergy (30%) and Sezigyn (20%).
“Following the Venus success in Namibia, TotalEnergies is continuing to progress its exploration effort in the Orange Basin, by entering this promising exploration license in South Africa,” said Kevin McLachlan, Senior Vice-President Exploration of TotalEnergies.
TotalEnergies has been present in South Africa since 1954, when it started distributing petroleum products. Today the company is a leading player in renewables, fuel marketing and services, lubricant blending, refining and exploration & production.
Through a diverse portfolio, TotalEnergies boasts a network of 550 retail sites in South Africa, including LPG distribution sites for domestic energy needs, solar and wind renewable energies, including the Prieska solar power plant, which has been supplying more than 70 000 homes with electricity since 2016.
TotalEnergies also intends developing a 120 MW solar plant and a 140 MW wind farm in the Northern Cape province to supply green electricity to the Sasol’s Secunda site, where Air Liquide operates the biggest oxygen production site in the world. Notably, 260 MW is equivalent to a quarter of an average nuclear power plant. In addition, TotalEnergies in South Africa, through its exploration segment and together with its various joint venture partners, holds exploration rights over four offshore blocks.