TotalEnergies, in partnership with Qatar’s state oil company, has announced plans to extend their hydrocarbon exploration efforts to South Africa, following their success in the Orange Basin region of neighboring Namibia. This strategic move will see the French energy giant acquiring a 33% stake in the offshore block 3B/4B, covering approximately 18,000 square kilometers of potential oil and gas reserves, while QatarEnergy will secure a 24% stake. The details of the transaction, including its financial implications, were not disclosed by the parties involved.
The rest of the stake in this promising venture remains with the current project holders: Africa Oil, Azinam (under the umbrella of Canada’s Eco Atlantic), and Ricocure. This collaboration marks a significant step in TotalEnergies and QatarEnergy’s ongoing partnership, which has already seen them engage in exploration and production activities across Namibia, Guyana, and Kenya.
Situated on South Africa’s side of the fertile Orange Basin, block 3B/4B lies just south of notable discoveries in Namibia, including TotalEnergies’ own Venus discovery, as well as significant finds by Shell and Galp. These developments underscore the Orange Basin’s emergence as a focal point for global hydrocarbon exploration, particularly after several deep-water discoveries have positioned Namibia as an exploration hotspot, despite the country’s lack of current oil and gas production.
Kevin McLachlan, Senior Vice-President of Exploration at TotalEnergies, expressed the company’s enthusiasm about advancing their exploration efforts in the Orange Basin following their success with the Venus discovery in Namibia. This sentiment was echoed by Eco Atlantic CEO Gil Holzman, who praised TotalEnergies as an ideal partner, highlighting their extensive knowledge of the basin, operational prowess, and robust financial standing.
The Orange Basin remains largely uncharted, with numerous legacy wells dotting the shallow waters along South Africa’s coastline. Yet, the potential for significant oil and gas reserves is high, with geologists estimating millions of barrels of oil and associated gas in at least two prospects in the basin’s northern region. Jonathan Salomo, the lead geologist for the West coast at the Petroleum Agency of South Africa, remarked on the basin’s high prospects and likened South Africa’s side of the Orange Basin to those in Namibia.
This expansion of TotalEnergies and QatarEnergy’s exploration activities into South Africa not only highlights the untapped potential of the Orange Basin but also signals a growing interest in developing sustainable energy resources in the region.
