PARIS, March 6 (Reuters) - TotalEnergies and
Qatar's oil company on Wednesday said they would buy a stake in
a licence to seek oil and gas off South Africa as part of their
plans to develop the Orange basin area in neighbouring Namibia.
The French company will buy a 33% stake in the licence to
drill in offshore block 3B/4B, which extends over about 18,000
square kilometres, while state-owned QatarEnergy will hold a 24%
stake, the two companies said without disclosing the value of
the deal.
The remainder will be controlled by the existing owners of
the project Africa Oil ( AOIFF ), Azinam, which is owned by
Canada-listed Eco Atlantic and Ricocure.
TotalEnergies and QatarEnergy have longstanding agreements
to partner on exploration and production in Namibia, Guyana and
Kenya.
Block 3B/4B is located in South Africa's side of the Orange
Basin, just south of big discoveries by Galp, Shell
and TotalEnergies' own Venus discovery in neighbouring
Namibia.
"Following the Venus success in Namibia, TotalEnergies is
continuing to progress its Exploration effort in the Orange
Basin," said Kevin McLachlan, Senior Vice-President Exploration
of TotalEnergies.
Namibia, which has no oil and gas production, has become a
global exploration hotspot after deep water discoveries by
Shell, TotalEnergies and Galp in recent years.
Eco Atlantic CEO Gil Holzman told Reuters: "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 is largely unexplored, with dozens of
legacy wells drilled in shallow shelf waters along South
Africa's coastline.
"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," said Jonathan Salomo, the
lead geologist for the West coast at the Petroleum Agency of
South Africa.