Oil & Gas

QatarEnergy announced on Sunday that it has reached an agreement with TotalEnergies SE to acquire additional stakes in two offshore blocks located on the Namibian side of the Orange Basin. This acquisition is part of TotalEnergies’ ongoing divestment strategy following its purchase of additional stakes earlier this year from a third partner in the same leases. The deal marks a significant step for QatarEnergy in expanding its presence in one of the world’s most promising oil exploration regions.

Under the terms of the agreement, QatarEnergy will purchase a 5.25 percent stake in block 2913B (Petroleum Exploration License 56) and a 4.695 percent stake in block 2912 (Petroleum Exploration License 91). This will raise QatarEnergy’s total ownership in the blocks to 35.25 percent and 33.025 percent, respectively. The transaction is still subject to customary approvals, and while QatarEnergy did not provide a timeline for completion, the company emphasized the strategic importance of the deal. The price agreed upon for the purchase was also not disclosed.

Saad Sherida Al-Kaabi, President and CEO of QatarEnergy, expressed his satisfaction with the agreement, highlighting that it strengthens the partnership towards the development of the Venus discovery, located in block 2913B. The Venus 1X oil discovery, which was announced in February 2022, has been described as significant, with drilling revealing about 84 meters of net oil pay in a high-quality Lower Cretaceous reservoir. The discovery has bolstered interest in the region, which has seen substantial oil exploration activity in recent years.

The Orange Basin, located off the coast of Namibia, has seen considerable oil discoveries, with recoverable reserves now exceeding 2.1 billion barrels of oil equivalent. This has attracted a wave of exploration activity from major oil companies such as Shell, TotalEnergies, BP, Eni, and Chevron, all of whom are competing for exploration blocks in the area. Rystad Energy noted that the region has generated significant industry attention, particularly due to the success of major discoveries, such as the Venus discovery and Galp Energia’s Mopane discovery, which has a potential resource of about 10 billion barrels of oil. This growing interest positions Namibia as a key player in the global oil exploration landscape, potentially replicating the success of oil-rich regions like Guyana.