Africa Oil Corp. says that it has completed what it describes as a “strategic” farm down agreement with TotalEnergies and QatarEnergy for the Orange basin block 3B/4B, offshore South Africa, originally announced on March 6, 2024.
Under the agreement, Africa Oil has transferred the operatorship of block 3B/4B to TotalEnergies while retaining a 17% interest in the block.
Under a separate agreement between Africa Oil and Eco (Atlantic) Oil & Gas Limited’s subsidiary, Azinam Limited, Africa Oil will acquire an additional 1% in block 3B/4B from Azinam, subject to approvals from the government of South Africa.
Subject to needed approvals, the interests in block 3B/4B will be comprised of: 18% held by Africa Oil; 33% held by TotalEnergies; 24% held by QatarEnergy; 19.75% held by Ricocure; and 5.25% held by Azinam.
Africa Oil Chief Executive Officer, Dr. Roger Tucker, commented: “Africa Oil has an unrivalled position amongst its Independent E&P peer group in the world-class Orange basin. This includes our interest in the Venus discovery and the follow-on appraisal and exploration upside on block 2913B, offshore Namibia. This farm down with TotalEnergies and QatarEnergy, two companies with deep geological knowledge of the basin, will facilitate exploration activities on block 3B/4B, and extends our near-term scope for testing significant upside potential in our portfolio.”
