Exploration

Impact now holds a 9.5% interest in each of Blocks 2912 and 2913B. (Image source: Impact Oil & Gas)

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. 

Block 15/06 is one of the most prolific licences in Angola. (Image source: Adobe Stock)

The Government of Angola has approved Sequa Petroleum NV's acquisition of participating interests in Block 15/06 (10%), Block 23 (40%, with operatorship), and Block 27 (35%)

Block 15/06 is one of the most prolific licences in the Angola deepwater with current oil production approximately 100,000 barrel of oil per day, forecasted to increase beyond 200,000 bopd within two years through an ongoing development programme. 

Angola is further opening its doors to investors from around the globe as Angola's National Oil, Gas & Biofuels Agency (ANGP) prepares to offer 10 blocks in the Kwanza and Benguela Basins early next year. 

Transaction details

The SPNV transaction process that dates back to 2022 following the issuance of an independent review of Block 15/06 is set to finally come to a close around the end of this year. The SPE PRMS guidelines-backed and updated review for estimated remaining recoverable volume of the 10% interest sums up to 72 million barrels of oil since January 2024 (around 78 million barrels from the effective date).

The transaction is planned to be funded through a combination of equity contributions from the partners, and third-party debt. 

Angola’s minister of mineral resources, oil and gas, Diamantino Azevedo, highlighted new industry policies in the country such as the permanent offering of blocks, among others, while speaking at the Angola Oil & Gas 2024 conference.

The contract makes CNOOC Africa Holding the operator of Block 7. (Image source: Adobe Stock)

CNOOC Limited's wholly owned subsidiary, CNOOC Africa Holding Ltd, has entered into an exploration, development and production contract (EDPC) with Midland Oil Company for Block 7 in the Republic of Iraq

Block 7 is located in Province Diwaniyah, spanning across an area of 6,300 square kilometers.

Operator status

With a 100% interest, the contract makes CNOOC Africa Holding the operator of Block 7. The first stage of the exploration period shall be three years. 

CNOOC has a long-standing presence in Africa, from Uganda's Albertine Graben region to nearly US$14bn interests in Nigerian operations, among others. 

Discussions revolved around Eni's broad asset portfolio in Egypt. (Image source: Adobe Stock)

Italian oil & gas major, Eni, reiterated its natural gas interests in Egypt as the company CEO, Claudio Descalzi, met the President of the Arab Republic of Egypt, Abdel Fattah el-Sisi 

Egyptian Oil Minister, Karim Badawi, and Eni's chief operating officer for global natural resources, Guido Brusco, were also present at the meeting.

Developing gas hub

Discussions revolved around Eni's broad asset portfolio in the country that compises onshore as well as offshore. The company operates in Egypt through its subsidiary IEOC. The country's central role in developing a gas hub in the eastern Mediterranean was also highlighted given the presence of important gas processing and LNG export infrastructures in the region. 

Eni has already offloaded its first LNG cargo in Piombino from Egypt’s Damietta liquefaction plant in 2023. 

Explorators such as Eni might also make use of invaluable data that have been recently released from Egypt deepwaters by geoservices provider PGS, with one of the latest being the area between the Nile delta and the Herodotus Basin.

Descalzi emphasised the company's decarbonisation and energy transition path as well, including methane emissions reduction, energy efficiency solutions and renewables.

The visit was also an opportunity to recall the 70th anniversary of Eni's presence in Egypt, which was, in 1954, the first country outside of Italy with which the company began working.