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Impact Oil & Gas Limited has completed the farm out of its interests in Blocks 2912 and 2913B offshore Namibia to TotalEnergies EP Namibia BV

This development was made possible following the receipt of relevant regulatory approvals from the Government of Namibia and consent from joint venture partners.

The farm out agreement between Impact Oil and Gas Namibia (Pty) Ltd and TotalEnergies EP Namibia BV dates back to 10 January 2024, wherby the decision was reached for the sale of a 9.39% undivided participating interest in Block 2912, and a 10.5% undivided participating interest in Block 2913B.

The transaction provides Impact with a carry loan for all of its remaining development, appraisal and exploration costs on the Blocks from 1 January 2024, until the date on which Impact receives the first sales proceeds from oil production on the Blocks. The carry loan is repayable from a share of Impact’s after-tax cash flows, and net of all joint venture costs, including capital expenditures, from production on the Blocks. In addition, on completion of the transaction, Impact received approximately US$99mn from TotalEnergies, as reimbursement for its share of costs incurred on the Blocks net to the farm out interests, prior to 1 January 2024.

Following completion of this transaction, Impact holds a 9.5% interest in each of Blocks 2912 and 2913B.

Siraj Ahmed, CEO of Impact, said, “We are pleased to have received approval from the Government of Namibia for our farm-out and look forward to continuing our journey towards first oil in Namibia. This is a transformational transaction for the company, securing Impact’s future participation in this exciting play. Additionally, this transaction, through the carry, gives Impact a funded exposure to further significant exploration opportunities in the Blocks, starting with the recently spud Tamboti-1X well.

“We look forward to continuing our longstanding partnership with NAMCOR, TotalEnergies and QatarEnergy, and would like to thank the TotalEnergies team for their ongoing collaboration.” 

This transaction serves Impact's ambition for transition from an exploration company to a hydrocarbon-producing company.

3D seismic raises promising prospects

With the successful penetration and testing of four drilled wells since the 2022 Venus-1X discovery, planning is on for the first development area to be finalised by 2025 end.

Data is currently being processed for interpretation from the licenced area over the southern and northern parts of the combined blocks, most of which are now covered by 3D seismic. 

TotalEnergies has recently extended its contract with Northern Ocean for DeepSea Mira, which has already unlocked significant additional resource in the north of Block 2913B after spudding the Tamboti-1X well. Further deployment of the semi-submersible drilling unit might be required once prospects in the southern part of the Blocks that are currently being matured by the recent 3D-seimic data possibly heighten chances of potential high impact exploration wells. 

Energy data and intelligence provider, TGS, has expanded 3D seismic coverage for its Benin MegaSurvey, in collaboration with Societe Nationale des Hydrocarbures du Benin (SNH-B)

This strategic initiative aims to deepen understanding of the region’s subsurface geology and unlock its untapped hydrocarbon potential. 

Previously, TGS had also acquired data from countries such as Tanzania and Liberia. 

With this expansion, the company will add 2,248 sq km of high-quality conventional 3D seismic data to the existing Benin MegaSurvey. The expanded coverage will span from the continental shelf to the slope, offering a comprehensive view of the area and revealing previously untapped exploration potential.

Seamless data integration

Besides the seismic expansion, TGS has also incorporated 10 wells into its advanced tool, RockAVO atlas, which integrates seismic data with well information, offering explorers a powerful suite of capabilities. It features the Interactive Rock Physics Atlas, which allows to explore rock physics models, analyse elastic properties, and visualise seismic AVO responses for detailed subsurface insights.

Explorers can access a wealth of well logs, rock physics models, and data atlases in a single platform, streamlining exploration workflows through its Well Data Integration platform.

While there is a Scenario Testing facility that helps screen for geological analogs, and assess lithology, fluid content, and porosity to de-risk plays and enhance decision-making, the tool also ensures data accuracy and seismic image integrity with enhanced Quality Control features. 

Exploration interests in Benin have been growing lately with companies such as Rex International Holding and  Zenith Energy operating in the Seme Field. 

The potential of Artificial Intelligence (AI) to transform the energy industry and accelerate decarbonisation has emerged as a critical topic of conversation amongst energy ministers and business leaders at ADIPEC 2024 

On the opening day, Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC managing director and Group CEO, emphasised the critical need for industry leaders to come together and support era-defining breakthroughs such as AI.

In a session titled 'The power of AI for the energy transition', top executives from the private sector - including Tayba Al Hashemi, CEO, ADNOC Offshore, ADIPEC 2024 chairperson; Michel Lutz, chief data officer and digital factory head of Data & AI, TotalEnergies, and Magzhan Kenesbai, acting managing director, AIQ - explored how AI is transforming business operations, and offered their expert insights on the long-term implications of wide-scale AI implementation.

Speaking to his company’s experience with AI, Lutz said, “We are using AI to improve operational efficiency, which supports our company's development in the renewables space. This allows us to better assist our clients in understanding their behaviour and what they need.”

Building on this sustained focus on AI’s role in the energy industry, speakers across ADIPEC’s 10 different conferences emphasised the pressing need to address the challenges and opportunities surrounding this transformative technology. Alongside other top CEOs and energy executives, Tengku Muhammad Taufik, president and Group CEO, PETRONAS, urged industry players to adopt a measured and holistic approach to AI, saying,“Before we perfect artificial intelligence, we need to address fundamental issues. AI can initiate either a virtuous or vicious cycle, depending on how we utilise this technology and how we feed it. While AI consumes a significant amount of energy and its production requires vast resources, it nonetheless helps economies and societies grow. It is up to us to respond wisely to the fork in the road ahead.”

Anima Anandkumar, Bren professor of computing and mathematical Sciences, Caltech, highlighted the evolving impact of AI on both the energy industry and the environment, saying, “We should consider not just the energy reduction achieved using AI, but also the time and money saved by employing these AI models. AI is helping us take corrective action in response to natural disasters and other climate-related issues, and the more data we have available, the better our AI models will become. The impact that AI can have in designing from scratch and creating simulations enhances our work in energy and technology.”

ADIPEC’s commitment to accelerating AI-enabled energy solutions and projects was reflected in the event’s inaugural AI Zone, which featured AI studios and demo pods that showcased transformative solutions from leading energy and AI businesses. This dynamic space provided attendees with a comprehensive view of the innovations shaping the future energy system.

The space also played host to the dedicated AI Conference, where leaders from the energy, technology, and government sectors worked together to develop a strategic roadmap for integrating AI into the energy landscape.

The newly launched Digitalisation & Technology Conference delved into how next-generation technologies, including AI, can unlock decarbonisation and efficiency opportunities presented by Industry 4.0. Sessions covered advancements in new materials, the Industrial Internet of Things (IIoT), and carbon capture, utilisation, and storage (CCUS), with a focus on sustainable scaling of these technologies.

At AOW: Investing in African Energy held in Cape Town form 7-10 October, a dedicated panel discussion considered how the continent can secure its future in a changing landscape

Specifically, the session was dedicated to the role of gas, with the pipeline of associated projects in the continent never being stronger. However, if Africa is to be competitive in a dynamic international gas market, it must ensure that it offers value. This means shaping an offer that meets the financial and environmental sustainability of stakeholders; gas investment propositions must be relevant and future-proof or global capital will not be forthcoming.

“Natural gas is at the centre of what we are doing in Africa,” commented Mario Bello, head of sub-Saharan Africa region at Eni. “It’s the cleanest fossil fuel, producing fewer emissions than coal, so it plays an important role as we transition to renewables… Floating LNG is the key to unlocking the region’s gas potential, making it easier and faster to develop offshore resources.”

A stable investment environment

Meanwhile, Paul Eardley-Taylor, head of oil & gas, southern Africa at Standard Bank, considered the financing challenge that remains a significant hurdle for projects. He emphasised the need for bankable projects that address investor concerns, particularly around sovereign risk. He also drew attention to the transformative potential of large-scale LNG projects and smaller, domestically-focused gas ventures, labelling the impact they could have in African markets “incalculable”.

Stressing the importance of a stable investment climate to attract international capital, Equinor’s senior vice president for Africa, Nina Birgitte Koch, said, “CO2 is the key criteria. It’s not just a ‘nice to have’ any more. I don’t think it’s possible to get capital to a big LNG project unless it’s highly competitive when it comes to CO2."

Tshepo Mokoka, Group COO of South Africa’s Central Energy Fund (CEF), raised the call for government intervention to address market failures and unlock investment. He outlined CEF's role in enabling critical gas infrastructure projects, such as the Romp pipeline and LNG import terminals. “We need to solve the market failure,” Mokoka surmised, highlighting the need for government-backed gas offtake agreements and risk-sharing mechanisms to attract private capital.

ExxonMobil’s executive director global, LNG marketing, Deri Irawan, emphasised the importance of a holistic approach to project development, considering not just the technical and economic aspects but also the social and political landscape. He commented on the need for strong partnerships and stakeholder engagement to ensure long-term project success. “It is insufficient to just bring a commodity to the doorstep. You also need to unlock that value chain.”

Gianluca Ciricugno, Africa director, enterprise customer solution at Baker Hughes, took the opportunity to stress the need for a long-term vision and collaboration between governments, investors, and technology providers. He urged, “It requires a broader vision, probably government and all the people around the table, with a long-term approach… and not just four-year terms.”

Cabinda Refinery in Angola is well on its way to generate first oil as soon as the next year kicks in, with commercial operations slated for July 2025, as informed by Marcelo Hofke, CEO Cabinda Refinery Corporation

"Cabinda is the first refinery built in Angola after independence and aligns with efforts by the government to decrease the necessity of processed import products," Hofke said to media outlets while speaking of the project's progress that began construction in 2023. 

The financial close for the refinery was reached in July last year at US$473mn, with US$138mn of equity already provided by the project sponsors and US$335mn project financing facility led by Africa Finance Corporation, African Export-Import Bank and a consortium of international and local financial institutions.

Currently aiming a production capacity of 30,000 barrels of oil per day, as well as products such as diesel and jet fuel during phase 1, Cabinda is preparing to double capacity to 60,000 bpd during phase 2, increasing produces with gasoline, diesel and gas. 

Reducing imports

The high significance of the project, which was launched with an aim to reduce import of derivatives, is put to perspective by founder and chief executive of Gemcorp, Atanas Bostandjiev's comments to Reuters, as he said, "Angola currently exports 98% of its crude and imports almost 100% of its refined products from Europe, so imagine how inefficient this whole system is." 

Since its origin in 2017 as a way of effective cost-cutting measures, there has been major shifts as the project ownership changed hands from United Shine to asset manager, Gemcorp. Today, as Gemcorp holds 90% interest, with 10% to Angolan National Oil Company Sonangol, Hofke maintains, "Today we have 2,800 people working on-site with 85% of them being Angolans. We are finalising a training programme in which we will train around 180 workers through next year to have a full capable workforce when we launch operations." 

ADNOC and AIQ has announced at ADIPEC the launch of ENERGYai, the first-of-its-kind custom-built agentic artificial intelligence (AI) solution for the global energy transformation

ENERGYai will combine large language model technology with cutting-edge ‘agentic’ AI – AI ‘agents’ that are trained in specific tasks across ADNOC’s value chain. These specialised AI agents bring a new level of autonomy and precision to critical tasks, from seismic analysis to energy efficiency and real-time process monitoring. Designed for seamless integration into existing workflows, the agents harness state-of-the-art machine learning and predictive analytics, improving decision-making and operational efficiency.

This innovation underscores ADNOC’s commitment to pioneering sustainable, data-driven solutions that elevate industry standards. Developed by AIQ in collaboration with G42 and Microsoft, ENERGYai will integrate best-in-class technologies, including open subsurface data universe (OSDU) frameworks and OpenAI models.

Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC managing director and Group CEO, said, “ENERGYai marks a major milestone in ADNOC’s journey to be the world’s most AI-enabled energy company and a key enabler of the global energy transformation. It will be a powerhouse for value creation and sustainable energy production and will leverage petabytes of data to better empower our people and unlock innovative solutions across our value chain. As AI accelerates the pace of progress and transforms industries, ENERGYai will help future-proof ADNOC, reinforce our position at the forefront of AI deployment and ensure we continue to provide secure and sustainable energy to the world.”

Peng Xiao, Group CEO of G42, said, "ENERGYai embodies G42’s commitment to transforming global energy through AI, delivering real-time, data-driven insights and deploying agentic AI to enhance efficiency, resilience, and sustainability. By combining ADNOC’s industry leadership and petabytes of historical data with G42’s advanced AI capabilities, and collaborating with Microsoft, we are creating a strong foundation for the future of energy—empowering leaders to make strategic choices that drive sustainable progress."

“Across the full value chain of traditional and renewable energy sectors, AI technologies can optimize energy usage, improve safety, reliability and efficiency, reduce emissions and accelerate low- and no-carbon energy solutions,” said Darryl Willis, corporate vice president - energy and resources industry at Microsoft. “We are pleased to be collaborating with ADNOC and AIQ in the development of AI-powered solutions that can drive economic growth, address energy security and equity, and advance a net-zero future for all.”

Trained on ADNOC’s 80 years of data, the ambitious three-year development programme for ENERGYai will begin testing with real-world datasets by the end of 2024 in a number of specific areas. It is projected that ENERGYai will accelerate by up to 75% the building of detailed geological models using very large and diverse datasets to support planning and development of large-scale CO2 storage solutions.

In development planning, ENERGYai will accelerate plans from 1-2 years to weeks, minimising costs and emissions in the process. ENERGYai can analyse multiple scenarios in parallel and this ability to run detailed, highly advanced simulations across all variables helps make faster and more accurate decisions. Further along the value chain in the downstream business, the platform's future-proof and scalable design integrates seamlessly with ADNOC’s existing technologies and platforms.